Malaysia

High health insurance premiums driving high-income earners to public hospitals, says minister

Although high-income earners usually have insurance coverage and can pay directly at private hospitals, the increase in costs is causing them to re-evaluate their existing policies.

Updated 1 year ago · Published on 07 Sep 2025 4:49PM

High health insurance premiums driving high-income earners to public hospitals, says minister
Public hospitals remain open for all levels of the people - September 7, 2025

THE increase in health insurance premiums is among main factors driving more and more high-income earners (T20) to seek treatment at public hospitals, including at the Kuala Lumpur Hospital (HKL).

Health Minister Datuk Seri Dr Dzulkefly Ahmad said that although high-income earners usually have insurance coverage and can pay directly at private hospitals, the increase in costs is causing them to re-evaluate their existing policies.

“We cannot refuse. If insurance and takaful premiums increase, then not only the M40 (middle-income) group, but also the T20 will re-evaluate their policies.

“That is why it is very important for us to mitigate and control this aspect of insurance premiums,” he told reporters after officiating the Perak State Amanah National Party (Amanah) Convention 2025.

Dr Dzulkefly said cooperation between all parties including insurance and takaful companies, Bank Negara Malaysia (BNM), and private hospitals is needed to address the issue of rising medical costs, exceeding the national inflation rate.

He said that this matter needs to be carefully refined to ensure fair access to treatment for all as well as the financial sustainability of the country's health system.

"If my media friends still remember, this matter was previously raised by the Prime Minister in the context of targeted subsidies.

"However, until now there has been no specific development in the aspect of treatment in public hospitals. I am sure this matter needs to be followed up more carefully," he said.

The Amanah vice-president also stressed that public hospitals remain open for all levels of the people, including the T20 group.

“We must remember, the 150 public hospitals under the Ministry of Health Malaysia (MOH) are for all the people. Not only for the B40 or M40 groups, but also the T20.

"They usually have insurance or pay for it themselves at private hospitals. However, there are a small number who also seek treatment at public hospitals, especially in critical conditions," he said. – September 7, 2025

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