THE Federation of Malaysian Consumers Associations (FOMCA) has cautioned that the gradual rise in annual medical insurance premiums will not resolve affordability issues unless the government tackles the underlying escalation in private hospital fees.
Fomca secretary-general T. Saravanan said unchecked hospital charges were likely fuelling higher medical and insurance costs.
He noted that although doctors’ professional fees are subject to some regulatory oversight, a wide range of other hospital charges — including room rates, consumables and diagnostic procedures — remain largely unregulated.
“This has allowed costs to rise year after year, inflating insurance claims and pushing premiums higher for consumers,” The Star cited him saying today. “Strong regulation, immediate intervention and structural reform are needed to keep medical care and insurance accessible and affordable.”
Saravanan urged the Health Ministry and Bank Negara Malaysia (BNM) to maintain consistent monitoring of billing practices. “This can detect unjustified hikes, curb overcharging and create a more predictable claims environment. While it won’t eliminate medical inflation entirely, it can help moderate its growth and restore consumer trust,” he added.
He also suggested that the Domestic Trade and Cost of Living Ministry, through the Malaysia Competition Commission, intervene where price-fixing is suspected or reported.
Several insurers have already informed policyholders that premiums will be revised next year, with some increases estimated at around 9.9 per cent. These adjustments stem from BNM’s directive requiring insurers to spread premium hikes over at least three years to ease the financial burden on consumers.
The Life Insurance Association of Malaysia has confirmed that all insurers must comply with BNM’s measures to cap premium increases between 2024 and 2026.
Its chief executive officer, Mark O’Dell, emphasised that there is no industry-wide blanket increase. “Any adjustments vary by insurer and product, influenced by factors such as claims experience, medical cost trends, benefit designs and risk profiles,” he said.
O’Dell added that insurers are mindful of the impact of rising healthcare costs on consumers.
“Where premium revisions are necessary, they are subject to regulatory oversight to ensure they are appropriate, transparent and in policyholders’ interests.
“Importantly, not all plans or policyholders will experience the same level of adjustment, and in some cases, there may be no increase at all,” he said. - December 9, 2025
