PAC To Hold Closed-Door Proceedings On Insurance Hikes, Private Hospital Fees On Feb 24

KUALA LUMPUR, Feb 21 (Bernama) -- The Public Accounts Committee (PAC) will begin closed-door proceedings regarding the increase in health insurance premiums, private hospital charges, and its impact on public health on February 24 (Monday). 

The report is scheduled to be presented during the June Dewan Rakyat session.

PAC vice-chairman Teresa Kok said that 10 proceedings have been scheduled on the issue, involving the Ministry of Finance (MoF), the Ministry of Health (MoH), and Bank Negara Malaysia (BNM).

“The committee will call all relevant stakeholders in the health insurance industry, private hospitals, MoF, MoH, BNM, non-governmental organisations, and academics,” she said.

Kok made this statement during a press conference after the PAC public hearing on rising health insurance premiums, private hospital charges, and their impact on public health at Parliament today.

This is the second PAC public hearing, with a total attendance of 550 people.

The first hearing was held in Penang on February 14. This brings the total attendance for both hearings to 730 people.

Kok, who is the Member of Parliament (MP) for Seputeh, said that PAC decided to hold the public hearings to hear directly from the public affected by the uncontrolled price hikes in the private hospital sector and insurance premiums.

“The increase has also caused an impact on public health, as government clinics and hospitals are under pressure due to the public being unable to afford private hospitals, in addition to cancelling their insurance subscriptions due to premium hikes,” she said. 

Kok emphasised that all the information obtained from the public hearings will be included in the PAC report. 

Meanwhile, PAC member Sim Tze Tzin expressed confidence that the report will be able to help the government formulate policies or measures to assist the people.

“We will review all proceedings and make recommendations to the government for a comprehensive solution to this issue.

“Therefore, recommendations and proposals need to come out first to enable the relevant government agencies to start drafting new legislation,” he said.

The Bayan Baru MP also said that some of the issues raised in the public hearing included exorbitant private hospital charges and the rising cost of medicines and hospital equipment, which have significantly contributed to the increase in insurance premiums.

The public hearing also highlighted the difference in hospital charges for patients who make insurance claims versus those who pay in cash.

“There is a need to reform this ecosystem. We hope to resolve all proceedings within three months,” Sim added.

Today’s public hearing was conducted by Kok, Sim, and several other MPs, including Shah Alam MP Azli Yusof, Betong MP Datuk Richard Rapu @ Aman anak Begri, Kubang Pasu MP Datuk Wira Dr Ku Abd Rahman Ku Ismail, and Kapar MP Dr Halimah Ali. 

In December 2024, BNM directed all insurance and takaful companies offering medical and health insurance/takaful (MHIT) products to implement a set of new measures.

Under these measures, insurers and takaful operators (ITOs) are required to spread out the impact of premium increases caused by medical claims inflation over a minimum period of three years for affected policyholders, with this adjustment period running through to the end of 2026.

This move is intended to ease the burden on policyholders facing premium increases.

Last month, Prime Minister Datuk Seri Anwar Ibrahim said the government would not tolerate any increase in health insurance premiums without reasonable justification.

-- BERNAMA