KUALA LUMPUR: The Federation of Malaysian Consumers Associations (Fomca) chief executive officer T. Saravanan has called for a regulatory division to be set up under the Prime Minister's Department to oversee medical insurers and private hospitals.
Saravanan said Fomca does not agree with the interim measures of limiting premium increases to 10 per cent cap, and for healthcare providers to contribute to a fund aimed at reducing insurance costs.
"We disagree with the 10 per cent cap. It should be capped at five or six per cent… We need a social healthcare financing system that will assist the public.
"We do not agree with the proposal to contribute to a fund aimed at making medical insurance more affordable. That would be a waste of money as it would still be industry-controlled and biased.
"What we need is a concrete solution for Malaysia's healthcare system," he said.
Saravanan said the temporary pause on premium increases for the elderly does not tackle the core issue, lack of transparency and governance surrounding medical inflation.
He said that currently there is no proper governance by the relevant agencies, including insurance companies and private hospitals.
"This problem will continue unless we take action. We have been highlighting this issue since the Covid-19 pandemic, yet no agency in Malaysia is actively addressing medical inflation.
"It is high time for a regulatory body under the Prime Minister's Department to oversee medical insurance and private hospitals. This must be done now," Saravanan said.
Meanwhile, the Association of Private Hospitals Malaysia (APHM) president Datuk Dr Kuljit Singh said it is in talks and gathering information with various ministries regarding the 10 per cent cap on premium increases.
"APHM takes note of the 10 per cent cap and spread of the premium increase… We are working towards the best solution in the interest of all parties.
"At present, we are gathering information and are in deep discussions with the Health Ministry and other ministries in the government on this matter," Kuljit told the New Straits Times today.
Dr Kuljit reiterated that APHM remains committed to ensuring that Malaysians continue to receive the best healthcare.
"We will share a statement once we have better visibility and have concluded discussions with the Health Ministry and government," Kuljit said.
Earlier, Bank Negara Malaysia (BNM) said insurers and takaful operators will spread medical and takaful health insurance (MHIT) premium increases over a minimum of three years, to keep hikes under 10 per cent a year.
This measure will remain in place until the end of 2026.
As part of a long-term solution to the issue of medical inflation and increase in premiums, BNM also said that the government, together with insurers and private hospitals, will contribute RM60 million to accelerate health reforms.