Malaysia

Govt to pilot MediAsas this month as RESET strategy targets rising private healthcare costs

A long-term RESET strategy aims to curb private healthcare inflation, making medical coverage more affordable and ensuring fairer protection for policyholders

Updated 2 months ago · Published on 16 Jul 2026 3:36PM

Govt to pilot MediAsas this month as RESET strategy targets rising private healthcare costs
The government will begin piloting the MediAsas basic medical and health insurance and takaful scheme by the end of this month ahead of its nationwide rollout in January 2027 - July 16, 2026

THE government will launch a pilot programme for the MediAsas Basic Medical and Health Insurance and Takaful (MHIT) scheme by the end of this month as part of its newly introduced RESET strategy to address the long-term rise in private healthcare costs and improve the affordability of medical insurance for Malaysians.

Deputy Finance Minister Liew Chin Tong said the pilot programme would serve as the final preparatory phase before the scheme is implemented nationwide in January 2027.

He said the RESET strategy was designed to tackle structural inflation in private healthcare costs over the long term, with MediAsas forming one of its central policy initiatives.

"MediAsas aims to provide more affordable and sustainable long-term medical protection for the people. This will enable more Malaysians to obtain private healthcare coverage," he told the Dewan Rakyat during the ministerial question-and-answer session.

Liew was responding to Pang Hok Liong (PH-Labis), who asked the Finance Ministry to provide a timeline for introducing measures to ensure insurance companies control or reduce rising medical insurance premiums that have become increasingly burdensome for consumers.

Explaining the sharp increase in Medical and Health Insurance and Takaful (MHIT) premiums in 2024, Liew said it was driven by a surge in insurance claims following the COVID-19 pandemic, coupled with the deferred repricing of premiums by insurance and takaful operators (ITOs) throughout the pandemic period.

Responding to a supplementary question from Datuk Mohd Suhaimi Abdullah (PN-Langkawi) on concerns that insurers were closing older insurance portfolios, allegedly discriminating against senior citizens, Liew said the issue was being addressed by Bank Negara Malaysia (BNM).

He said the matter had previously been identified and examined by a Parliamentary Select Committee.

To create a fairer insurance market, Liew said BNM would introduce a "no look-back" policy under the MediAsas scheme.

"Through this no look-back policy, those who reach a certain age, even if they develop new illnesses, will not have their coverage withdrawn, and they will be able to continue their protection and receive insurance claims," he said.  - July 16, 2026

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