Bank Negara Malaysia (BNM) says interim measures remain effective in cushioning policyholders from rising medical costs, as broader reforms to the country’s healthcare financing system continue, Bernama reports.

Governor Datuk Seri Abdul Rasheed Ghaffour said the government is pursuing a three-year reform programme built on five thrusts and 11 recommendations aimed at improving service delivery and easing medical insurance inflation.

These reforms fall under the RESET framework, which focuses on revamping health insurance, enhancing implementation, strengthening digital health, expanding cost-effective care, and transforming payment systems.

A central element of RESET is the revamp of the medical and health insurance/takaful (MHIT) base product.

BNM expects the redesigned plan to be completed by the end of this year, with pilot rollout scheduled in selected areas in 2026.

Other measures include developing a national digital health system, introducing price transparency for treatments and drugs, using value-based payments such as diagnosis-related groups (DRGs), and expanding affordable access through public-private partnerships.

These initiatives are coordinated through the Joint Ministerial Committee on Private Healthcare Costs (JMCPHC), co-led by the Finance and Health Ministries with BNM’s involvement, supported by a consultative council of industry and consumer stakeholders.

In the meantime, interim measures introduced on 20 December 2024 remain in place.

These initiatives were designed to ease the immediate burden of premium increases by phasing adjustments over several years, providing targeted relief for older Malaysians, and allowing policyholders to switch or reinstate coverage without fresh underwriting.

BNM said the combined approach of short-term relief and long-term reforms is intended to stabilise healthcare financing and ensure access to sustainable medical coverage for Malaysians.

Featured image: Edited by Fintech News Malaysia, based on image by BG_illustrations via Freepik