Three insurance industry associations in Malaysia have released a joint statement denying allegations that they receive a share of their policyholders’ medical expenses in hospitals.
The trio – Life Insurance Association of Malaysia (LIAM), General Insurance Association of Malaysia (PIAM), and Malaysian Takaful Association (MTA) – said that they take the “unfounded allegations” seriously.
“Insurance companies and takaful operators through LIAM, PIAM, and MTA had worked closely with the hospitals and third-party administrators to ensure that the cost of healthcare is maintained at an affordable level,” the statement said.
“In recent years, premium rate increases have been driven by high inflation in healthcare costs, which averaged 12% pa during the period of 2010 to 2014.”
The premium rates, according to the statement, are projected to increase by 15% each year due to increased demand for better healthcare services from high-income segments of the population, aging population, and a higher incidence of chronic and lifestyle diseases.
Also, while doctor’s fees are regulated by the government, other components of medical expenses such as hospital admission, laboratory tests, and fees for use of equipment are not regulated, reports the New Straits Times. This leads to a wide gap in costs among privately owned hospitals, the associations added.
The statement called on governments to require hospitals to publish a complete list of fees for treatments.
“This is to provide a choice to policyholders to select the hospital in which he/she would like to be treated and to be aware of the amount that their insurers and takaful operators are able to reimburse,” they said.
The associations also promised to do their best to keep health insurance premiums at a reasonable level by cooperating with all stakeholders to benefit the consumers.
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