The government has announced plans to introduce a basic medical and health insurance and takaful (MHIT) plan to provide Malaysians with affordable and sustainable protection against major healthcare expenses, while helping to manage rising private healthcare costs. Health Minister Datuk Seri Dr Dzulkefly Ahmad unveiled the initiative earlier today during a joint press conference with Finance Minister II Datuk Seri Amir Hamzah Azizan and Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour.
On pricing, Amir Hamzah said the basic MHIT plan is expected to be offered with monthly premiums starting from around RM80 to RM120. The plan will be piloted in the second half of the year, ahead of a full rollout targeted for the first quarter of 2027.
What The Base MHIT Plan Covers
The base MHIT plan is designed as a standardised hospitalisation policy covering major hospital bills based on shared-room costs. It also includes expanded pre- and post-hospitalisation benefits such as GP consultations, follow-up care, physiotherapy, and home nursing services.
The plan will not impose a lifetime limit, while its annual limit is set at a level sufficient to cover treatment costs for about 99% of common hospitalisation cases. Enrollment will be capped at those aged 70 and below, with coverage guaranteed for renewal up to the age of 85.
High-cost treatments, including inpatient and outpatient cancer care and related drugs, will be covered based on cost-effectiveness assessments. Benefits and premiums under the base MHIT plan will be standardised across insurers and takaful operators, supporting broader risk pooling, portability, and a consistent approach to underwriting and claims assessments. Those who require higher coverage will be able to opt for increased annual limits, with higher premiums borne accordingly.
According to Bank Negara Malaysiaโs white paper, the base MHIT plan is intended to serve as a voluntary baseline product for the market. It is positioned as part of a wider healthcare financing reform aimed at improving affordability, reducing premium volatility, and encouraging a shift towards value-based healthcare, including the phased implementation of diagnosis-related group (DRG) payment models.
Health Insurance Calculator
Alongside the MHIT initiative, Dr Dzulkefly said the government and industry players are developing a health insurance and takaful calculator to help Malaysians plan for future healthcare expenses. The tool will allow consumers to estimate monthly savings needed for premiums and co-payments over their coverage period, while factoring in medical inflation.
The health minister said the calculator is intended to help patients make more informed decisions about insurance coverage and private healthcare costs, although no timeline was provided for its availability. He also noted that, as part of broader transparency efforts, the industry has published price ranges for 26 common medical procedures at private hospitals, showing variations by location and age group, as well as average lengths of stay.
(Source: The Star [1] [2] / The Edge Malaysia / Berita Harian)