KUALA LUMPUR – The Federation of Malaysian Consumers Associations has warned that the new co-payment policy for medical and takaful insurance products (MHIT) will adversely affect low-income consumers.
Its president Datuk Marimuthu Nadason called for a balanced approach so that low income earners would still have equitable access to healthcare without undue financial burdens.
“For many low-income consumers, even modest co-payments can accumulate, resulting in significant financial strain,” he said in a statement.
Marimuthu said out-of-pocket expenses might force individuals to choose between healthcare and essential needs, such as food or housing.
This financial dilemma could lead to delayed treatments, which in turn may worsen health outcomes and increase long-term healthcare costs, he added.
The new policy, effective in the third quarter of this year, may also carry potential for increased administrative costs associated with implementing and managing co-payment systems, he cautioned.
“These additional expenses could negate any savings achieved through reduced utilisation.”
A fairer approach for lower-income consumers would be to implement co-payments on a sliding scale based on income, so that those earning less would pay less or zero, ensuring cost-sharing is balanced with affordability, he suggested.
Exemptions from co-payment should also be considered for essential medications and treatments, especially for low-income and vulnerable populations.
“Government subsidies can offset co-payment costs for those unable to afford them,” Marimuthu said.
He also suggested expanding health insurance coverage and increasing public funding for healthcare, more education about financial assistance programmes, and development of policies aimed at protecting low-income consumers from excessive medical costs.
The new co-payment policy was confirmed by Deputy Finance Minister Lim Hui Ying yesterday during a session of the Dewan Rakyat’s Special Chambers.
The move, effective this September, aims to combat the rising cost of medical insurance premiums, and to curb abuse of medical and insurance services.
Lim had cited examples from other countries where co-payment policies had led to lower premiums for consumers.
The policy by Bank Negara Malaysia will require insurance and takaful operators to offer MHIT products with a minimum co-payment of either 5% of total claimable expenses or an RM500 deduction per policy certificate year.
Insurance and takaful operators will not be allowed to design new MHIT products without these minimum co-payment features. – July 2, 2024