Cost-Sharing for medical and health insurance will start in 3Q 2024. Means what?

Cost-Sharing for medical and health insurance will start in 3Q 2024. Means what?

If we have a medical card today and we are admitted into the hospital for treatment, chances are we will not have to pay a single cent and even if we do pay, we will be reimbursed the amount after we are discharged too. Of course, all these would depend on our medical card’s limit. The higher the limit, the less worry we have while if we exceed the amount, then we will have to foot the balance. This is about to change yeah.

Article in thestar.com.my Bank Negara Malaysia (BNM) has required insurers and takaful operators (ITO) to introduce cost-sharing features in their new medical and health insurance and takaful (MHIT) products starting in the third quarter (3Q) of this year.

Deputy Finance Minister Lim Hui Ying said, “This aims to encourage more responsible use of health services and further lower the costs that need to be jointly borne by the ‘pool’ (based on the concept of risk pooling).

“This measure can also reduce false claims and in turn, lower overall costs and improve the long-term sustainability of MHIT products,” she said at the Special Chamber session in the Dewan Rakyat today.

Lim said that based on experience in several countries, MHIT products with cost-sharing features have lower insurance premiums or takaful contribution rates than products without cost-sharing features. Do read the article in full here: Article in thestar.com.my

I think I will agree with this cost-sharing way

The reason is also because I do not wish for some people to misuse and in the end caused everyone to pay a higher premium. Remember, when others abuse the system, in the end, whoever remaining in the system would have to suffer the consequences too. So, I think this will stop people from agreeing to whatever treatment the hospital proposes and will actually seek to understand first.

If he / she did not do due diligence, then he / she will also have to share the cost with the insurance company as well! When this happens, I can safely say that I will be one of those who will now carefully look through the bill. This is something which I have never done before thus far.

More importantly, get a medical card please so that you will not be burdened financially due to some unforeseen medical situations.

Thank you for reading! Please do share if you believe others could benefit too. Thank you.

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