Consumer group Fomca praises the government’s new MHIT health insurance plan, designed to make coverage simpler and more affordable from 2027
PETALING JAYA: The Federation of Malaysian Consumers Associations (Fomca) has welcomed the government’s latest move to make private healthcare more affordable, praising the newly announced Medical and Health Insurance/Takaful (MHIT) plan.
The announcement comes amid growing concerns over rising medical costs and inflation, which have left many Malaysians struggling to maintain insurance coverage.
“Fomca sees the plan, a key strategic thrust of the Reset strategy, as a timely and much-needed intervention that aims to restore balance, transparency and sustainability in the nation’s healthcare system,” its CEO Dr Saravanan Thambirajah said in a statement.
The initiative, jointly announced by the Finance Ministry and the Health Ministry, seeks to address the long-standing issue of escalating healthcare expenses that have forced many Malaysians to drop their medical insurance due to unaffordable premiums.
“Fomca has consistently raised concerns over rising medical costs and medical inflation for nearly a decade, warning that uncontrolled increases would place severe financial pressure on consumers.
“Today, many Malaysians are facing this reality, as premiums become increasingly unaffordable, forcing households to give up coverage.
“This trend undermines financial security and exposes families to catastrophic health expenses,” Saravanan said.
He added that healthcare should not be seen merely as a commercial product.
“The government has a critical role in ensuring services remain affordable, accessible and fair for all segments of society.”
Set to be available in 2027, the proposed basic MHIT product is designed to be simpler, more affordable and free from investment-linked elements that previously drove up premiums and complicated coverage.
Saravanan said Fomca views these measures as a positive step toward protecting consumers, particularly the elderly, from rising insurance costs.
He also welcomed the government’s plan to expand the use of electronic medical records across public and private healthcare sectors, adding that better data integration could reduce repeated tests, improve continuity of care and help contain medical expenses.
The consumer group added that tax exemptions for welfare funds established by private hospitals could further support vulnerable patients, provided the mechanisms are transparent and effectively managed.
“Consistent monitoring and responsible enforcement will be key to the success of the initiative.
“We look forward to ongoing engagement with relevant ministries and stakeholders to ensure the initiative stays on track and genuinely improves healthcare affordability for consumers in Malaysia,” Saravanan said.
On Thursday, Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad announced that the government will introduce a new MHIT plan.
The plan will provide coverage for Malaysians of all income levels up to the age of 85.
Enrolment will be open to individuals aged 70 and below, with a pilot of the base plan scheduled for the second half of 2026 and full implementation expected in early 2027.
According to the White Paper on the Base MHIT Plan, developed with the support of Bank Negara Malaysia (BNM), as well as the Finance and Health ministries, indicative monthly premiums under the standard plan are as low as RM80 to RM120 for those aged 31 to 35, RM280 to RM350 for those aged 61 to 65 and RM500 to RM780 for those over 75.
For the standard-plus plan, which features a higher deductible and coverage limit, premiums are estimated at RM50 to RM70, RM220 to RM280, and RM400 to RM660 for the same respective age groups.
Final premium rates will be announced closer to the plan’s launch in 2027.
In June last year, the Finance and Health ministries announced that they have formed a Joint Ministerial Committee on Private Healthcare Costs (JMCPHC) to address rising private health care and medical inflation.
The JMCPHC is co-chaired by Amir Hamzah and Dzulkefly, with representatives from the two ministries and BNM.
JMCPHC will be the primary platform to guide and monitor the implementation of the Reset framework touted by BNM, which includes the revamping of medical and health insurance/takaful, price transparency, improving the digital health ecosystem and widening cost-effective options.
