KUALA LUMPUR — Bank Negara Malaysia (BNM) is still negotiating on the increase in medical insurance premiums, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also Finance Minister, said this was based on the central bank’s “report” that it would finalise the matter after completing negotiations with insurers.
“Bank Negara’s report states it will finalise only after negotiations.
“So as of now, the renegotiation process is still ongoing,” Anwar told reporters after attending Friday prayers in Putrajaya today.
The central bank on Nov 28 responded to public concerns over plans by medical insurance and takaful operators to raise premiums by 40% to 70% next year.
In its statement, BNM said insurers and takaful operators (ITOs) must review their “repricing strategies” for more reasonable implementation.
“This includes managing increases in premiums/contributions over time, taking into account the impact on policy owners/takaful participants,” the central bank said.
However, the issue continues to see lawmakers raising various concerns, including on unfair policies that discriminate against elderly policyholders.
MPs have urged Bank Negara to take a more proactive and direct stance by intervening in the pricing of insurance premiums.
There is also confusion over a Nov 29 joint statement by the Life Insurance Association of Malaysia (LIAM), the Malaysian Takaful Association (MTA) and Persatuan Insurans Am Malaysia (PIAM) that insurers have committed to staggering repricing adjustments, following BNM’s directive.
However, LIAM CEO Mark O’Dell in a separate media interview, was reported saying that this did not apply to the planned 40% to 40% premium hikes next year, and was in relation to “future” repricing strategies.
LIAM then issued another statement, on Dec 4, that appeared to deny O’Dell’s media interview where he said there would be “no immediate change” to the premium hikes next year.
ITOs have attributed higher premiums to the significant rise in healthcare costs, attributed to medical cost inflation, and higher utilisation of medical services and procedures.
Bank Negara in its Nov 28 statement said ITOs, the Health Ministry and the Association of Private Hospitals Malaysia (APHM) must continue to engage the central bank on setting premium rates.
APHM president Datuk Dr Kuljit Singh has agreed with this, saying rising healthcare costs is a global trend, but he also told Scoop claims that insurers charge patients with insurance or medical cards more than those who self-pay is “a common misconception…which has to be proven”. – December 6, 2024
