KUALA LUMPUR: The 2027 budget encourages greater collaboration among healthcare stakeholders, including insurance and takaful providers, to improve healthcare affordability and contain rising medical costs, said Etiqa Insurance and Takaful.
Its group chief executive officer Kamaludin Ahmad said healthcare providers should build on the government's initiatives by developing more concrete measures to address rising medical costs and inflation, while strengthening the overall healthcare ecosystem.
"There is quite a lot that we can work on, such as promoting medical insurance and takaful, and there are various incentives, including those aimed at small and medium enterprises (SMEs) to encourage employers to provide medical coverage for their employees.
"There is also an allowance for individuals to withdraw some money from their Employees Provident Fund (EPF) to make it easier for them to obtain medical coverage. I think that is a good measure, and the onus is also on insurance companies to promote it," he said to Bernama.
He also said that an emphasis on greater transparency through electronic medical records, which allow healthcare providers to access the same information, was among the key measures aimed at containing overall medical costs.
This can help avoid unnecessary tests or diagnoses when the relevant tests have already been conducted, preventing duplication, he said.
"Additionally, there is also a push for greater transparency in standardising charges and fees. I think that is a very good measure because, without standardisation and transparency, there is room for some parties to increase prices.
"With standardised and transparent charges, patients can also clearly see what they are paying for. Since they have a stake in their own healthcare costs, they can question whether certain charges are justified or whether a particular test or procedure is necessary," he added.
On whether the 2027 budget presents an opportunity for Etiqa to capitalise on the outlined measures, Kamaludin said they could help the company expand its customer base and extend protection to a wider segment of the population.
"For us, the more important consideration is being able to extend our services to more people. If we can do that well, the financial returns will follow. We believe there is satisfaction in being able to provide more services and extend coverage to more people.
"At the same time, we must be mindful of maintaining sufficient margins to ensure that we remain a sustainable, ongoing concern. Therefore, it is important to broaden our customer base and to be able to serve a wider group of people," he added.
During the tabling of the 2027 budget, Prime Minister Datuk Seri Anwar Ibrahim announced that the government would launch the MediAsas plan in January 2027 with affordable premiums.
MediAsas is a voluntary, standalone, yearly renewable medical and health insurance/takaful plan designed by Bank Negara Malaysia and the Ministry of Health to offer affordable private healthcare coverage.
Anwar, who is also the Finance Minister, said the government would subsidise the first-year premium by RM200 per employee for eligible SMEs, capped at 50 employees per company, which could benefit up to 200,000 workers.
He added that EPF members below the age of 55 would also be allowed to use their Akaun Sejahtera savings to pay MediAsas premiums.
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