Malaysia to implement healthcare reforms including affordable basic insurance by end-2026, DRG system and electronic medical records to control medical inflation.
KUALA LUMPUR: The government will implement structural reforms to address rising medical inflation and enhance healthcare expenditure transparency.
Finance Minister II Datuk Seri Amir Hamzah Azizan announced these measures during the Budget 2026 debate in the Dewan Rakyat.
He revealed plans to introduce an affordable basic medical and health insurance/takaful product by the end of next year.
“This gives us room until the end of next year to introduce the basic MHIT product,” he said.
The initiative aims to broaden existing market offerings and ensure better product foundations for consumers.
A committee co-chaired by the Ministry of Health and Ministry of Finance has been established to implement the reforms.
The committee involves all stakeholders including the insurance industry, Bank Negara Malaysia, and the Malaysian Medical Association.
Amir Hamzah emphasized the government’s commitment to meaningful structural reforms rather than temporary fixes.
“The government wants to implement meaningful structural reforms so that we can control costs in the future,” he stated.
Key reforms include implementing a results-based Diagnosis-Related Groups system and Electronic Medical Records.
These measures are designed to improve transparency and contain rising healthcare costs.
Under the RESET strategy, value-based basic health protection products will be developed by 2027.
“This is to provide affordable protection with more stable premiums,” the minister explained.
The government has also agreed to expand existing insurance coverage to ensure broader healthcare access.
Amir Hamzah suggested potential financing options including the Employees Provident Fund.
Long-term reforms will address root causes like private hospital cost structures and inconsistent clinical practices.
The government’s main goal is ensuring quality, sustainable, and affordable healthcare protection for all Malaysians. – Bernama
