ABOUT 340,000 private medical insurance policies have been surrendered by policyholders unable to afford rising premiums, prompting the government to introduce a more affordable protection scheme for middle-income Malaysians from January 2027.
Health Minister Datuk Seri Dr Dzulkefly Ahmad said MediAsas was being developed as a financial safety net for the M40 group amid medical inflation and growing reliance on public healthcare facilities.
“Currently, 340,000 private insurance policies have been surrendered by policyholders who can no longer afford the premiums, and people are flocking to government facilities. This is why the ministry is introducing this financial safety net.
“No Malaysian should be pushed into poverty simply because they need medical treatment. This MADANI health financial protection initiative offers an affordable basic protection scheme,” he said in a Facebook post.
Dzulkefly said the scheme would provide basic medical coverage with transparent cost controls, without hidden or excessive charges.
A pilot programme has been running in the Klang Valley since late July. Policyholders can also make flexible payments using funds from the Employees Provident Fund’s (EPF) Akaun Sejahtera, formerly known as Account 2, to ease their monthly financial commitments.
The Finance Ministry has said MediAsas will be offered as a standalone medical insurance and takaful plan for individuals up to the age of 85, with two options: MediAsas Teras, a standard plan, and MediAsas Fleksi, a standard-plus plan.
Separately, the Medical Assistance Fund has been increased by 50 per cent to RM60 million from RM40 million to help vulnerable groups pay for costly medical equipment, including bone implants and cardiac stents.
Another RM80 million has been allocated to the PeKa B40 healthcare scheme for lower-income Malaysians. - October 18, 2026