Private Hospitals Group Says Rise In Insurance Premiums Justified


 
Association of Private Hospitals Malaysia president Dr Kuljit Singh said the amount of increase in insurance premiums must be equitable to all parties, particularly patients and policyholders. (Facebook pic)
PETALING JAYA: The Association of Private Hospitals Malaysia has defended the impending surge in medical insurance premiums, saying it will support development in medical care and technology.
The association’s president Dr Kuljit Singh said such development improved the outcome and quality of treatment.
Therefore, he said, the expected rise in insurance premiums by 40% to 70% next year was “undoubtedly justified”.
Kuljit, however, admitted the increase came at a cost to providers, patients and insurers.
“If the increase corresponds to better coverage, it could allow those who remain covered to utilise the breakthroughs in care and technology,” he said in a statement.
However, Kuljit said a substantial rise would undoubtedly have a short to medium-term impact, namely a significant drop off in medical coverage holders.
And this could see the demand for private healthcare decline and patients, especially middle-income earners, seeking treatment at public hospitals, he said.
“The amount of increase must be equitable to all parties, particularly patients and policyholders.”
Earlier today, Utusan Malaysia reported that the medical insurance premiums were expected to rise next year, leading to some policyholders terminating their policies as they would be unable to bear the escalating cost of the monthly fees.
The impending increase is based on notices sent by insurance providers to policyholders, citing the rising cost of healthcare at private hospitals.
Last week, a group of PKR MPs claimed the rising cost of private healthcare services was forcing the middle-income group to seek treatment at government hospitals and clinics, exacerbating the problem of overcrowding at these facilities.
While he provided no data to support the claim, Bayan Baru MP Sim Tze Tzin said the rate increases were hurting the middle class, whom he said could no longer cope with the high costs. - FMT


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