THE Base MHIT scheme with a premium rate as low as RM80 per month is not a substitute for public healthcare, but rather a complement for all levels of society.
Finance Minister II, Datuk Seri Amir Hamzah Azizan, said it would thus enable broader financial protection for the people when implemented in early 2027.
"This Base MHIT product will be targeted at two groups, namely the people who do not yet have medical insurance or takaful but are able to afford private healthcare coverage, as well as MHIT policyholders who are currently looking for better and more affordable alternatives.
"Therefore, with this new plan, they have more affordable alternative options without compromising basic coverage," he said during the Minister's Question Time in the Dewan Rakyat, today.
He said this in response to a question from Khoo Poay Tiong (PH-Kota Melaka) on the main objective of introducing the MHIT plan with a premium of as low as RM80 per month, including the target group criteria and the extent to which the plan reduces the burden of household medical costs compared to existing insurance.
Amir Hamzah said that the voluntary Base MHIT plan has features that allow for more stable and predictable premium increases throughout the policy period compared to existing products in the market.
"The benefit package and premium rates will be standardized across all insurance and takaful companies offering the Base MHIT plan.
"This allows for broader risk pooling across ITOs (Insurance and Takaful Operators) offering this plan," he said.
Explaining further, he said that through the new plan, it provides a choice of more disciplined cost control practices including the use of different bulk payments according to hospital networks, a phased transition from a fee-for-service system to a Diagnostic-Related Group (DRG)-based payment system.
"It also allows for more effective health cost control through negotiations on the procurement of healthcare services.
"Furthermore, this basic product is also simpler and more self-contained, as this base plan is not based on investment-linked products.
"Therefore, it is easier to understand and affordable for consumers because they buy a medical insurance product only without any investment element that can affect the cost of insurance and the sustainability of coverage throughout the policy period," he said.
He said, with more controlled premiums including as they age, the base MHIT plan is expected to reduce the pressure of health costs on households and offer more affordable options compared to existing insurance plans.
"In addition to controlling costs for the people, the Base MHIT also supports important changes in the healthcare system towards value-based care.
"In addition to the phased use of the DRG-based payment model, the introduction of the Base MHIT plan will also drive increased cost transparency, digital health practices and incentive alignment between hospitals, insurance companies and consumers that place greater emphasis on value-based care," he said.
He said the plan will start with a pilot project in the second half of this year and full implementation in early 2027. – January 29, 2026
