Healthcare Crisis Hitting All Income Groups

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PETALING JAYA: It is a big red flag if people in the country’s top income group – the T20 – are starting to use public hospitals because private insurance is just too expensive, says the Federation of Malaysian Consumers Associations.
The federation’s senior manager Saral James Maniam said this is an indication how healthcare costs are getting out of hand, as not just the lower income folks are feeling the pressure.

“The Health Minister, Datuk Seri Dr Dzulkefly Ahmad, mentioned targeted subsidies, which could help, but it’s not a complete fix.
“We need more than that – like better regulation of insurance prices, clearer billing and more focus on preventive care so people don’t end up with huge medical bills later on.
“Public hospitals are already stretched thin and if more people from the T20 group start going there, it could make things worse unless we increase capacity.
“However, the government has to also make sure that cost-saving doesn’t mean cutting corners on quality or access,” Saral said.
She added that healthcare shouldn’t be something only the wealthy could afford but instead it should be fair, efficient and work for everyone – whether you’re rich or struggling to get by.
Saral said this in response to Dr Dzulkefly stating that rising insurance premiums could be one of the reasons why even those in the T20 bracket are increasingly seeking treatment at public hospitals.
He said that the issue warrants closer study, particularly in the context of targeted subsidies.
Consumers’ Association of Penang president Mohideen Abdul Kader said the sharp rise in health insurance premiums in Malaysia is threatening to push ordinary families out of the private healthcare system.
He noted that medical inflation in Malaysia has been among the highest in Asia, with insurance costs rising faster than wage growth.
“For families struggling to cope, the escalating premiums may force them to terminate their policies altogether,” he said.
The impact of this shift could be felt across the public healthcare system if more middle- and high-income families turn to government hospitals.
“The Health Ministry must strategise affordable options. With more people expected to turn to public facilities, the government has to either expand existing hospitals or build new ones,” he said.
He suggested that private healthcare providers should contribute by sharing high-end diagnostic and therapeutic equipment with the public sector at heavily subsidised rates, as part of their corporate social responsibility obligations.
Malaysia Consumers Mov-ment secretary-general Harminder Singh said the government must review public healthcare service and facilities to ensure that the public gets the best services.
“Private healthcare, although efficient, comes with a huge financial cost.
“We don’t want the public to become debtors for life, borrowing in desperation just to cover critical medical costs if public healthcare efficiency is lacking,” he said.
Meanwhile, Socio-Economic Research Centre executive director and economist Lee Heng Guie said the rising cost of private healthcare services is forcing the middle class and high-income households to seek treatment at government hospitals and clinics exacerbating the overstretched public healthcare facilities.
“We urgently call for the regulation of private healthcare costs and insurance premiums to make it affordable and ensure continued access for the public.
“The influx of patients, including some from higher income groups who previously relied on private facilities, places additional strain on the already burdened public healthcare system.
“The government has to take this escalating medical inflation and rising insurance premiums seriously given the ageing population,” he added. - Star

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