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Blood-sucking private hospitals and insurers to drive medical costs up to 70%
Update1
MP urges BNM to probe insurance firms for excessive profiteering
-27 Nov 2024, 04:59 PM
Sim Tze Tzin says Bank Negara Malaysia should not wash its hands of its responsibility to regulate increases in medical insurance premiums.
Bayan Baru MP Sim Tze Tzin was among a group of PKR MPs who claimed last week that the rising cost of private healthcare was forcing the middle class to seek treatment at government hospitals and clinics.
PETALING JAYA: Bayan Baru MP Sim Tze Tzin has called on Bank Negara Malaysia (BNM) to investigate insurance companies which have increased medical insurance premiums for excessive profiteering.
Speaking at a press conference in Parliament today, he said BNM should not wash its hands of its responsibility by calling the increased premiums a business decision.
“BNM has the authority to regulate all decisions made by insurance companies.
“If the domestic trade and cost of living ministry can investigate or implement price controls for excessive profiteering when the price of eggs goes up by 10 sen, why can’t BNM investigate insurance premium hikes of tens of hundreds (of ringgit)?” he asked.
It was reported yesterday that medical insurance premiums are expected to rise by 40-70% next year, based on notices sent by insurance providers to policyholders, citing the rising cost of healthcare at private hospitals.
Sim was also among a group of PKR MPs who last week claimed that the rising cost of private healthcare was forcing the middle class to seek treatment at government hospitals and clinics, exacerbating the problem of overcrowding.
At the press conference today, Sim castigated Association of Private Hospitals Malaysia president Dr Kuljit Singh for defending the increase in medical insurance premiums.
“He is trying to straighten a wet thread. It is well known that the increase in medical insurance premiums is closely tied, directly and indirectly, to the sharp and uncontrolled increase in private hospital charges.
“High private hospital charges have become a huge burden on insurance companies. And now they are passing the cost to policyholders,” he said.
Sim said some policyholders had stopped paying their premiums due to the high cost, and had started going to government hospitals.
“This indirectly increases the burden on government hospitals. The B40, who have relied on government hospitals all this while, are now the victims because they have to wait longer (to be treated),” he said.
Sim showed a letter sent by an insurance company to a policyholder, which he said contained a list of premium increases according to age.
“If I am between 46 and 50 years old, where previously I had to pay RM1,133 a year, I now have to pay RM1,699 a year. That is about a 50% increase. This is evidence. I hope that BNM will investigate this,” he said.
KUALA LUMPUR, Nov 27, 2024: Medical Insurance Premiums in Malaysia are set to rise up to 70% next year.
And Malaysians have the blood-sucking private hospitals and insurers to thank for rising costs.
Both work hand in glove to inflict misery on those in need medical treatment - the hospitals charge exorbitantly for their services and the insurers raise their premiums.
And this is despite the billions of Ringgit in profits in the medical and insurance industries.
And what is the so-called Madani Unity Government doing about it next year?
No News Is Bad News reproduces below a news posting by The Coverage on the blood suckers:
Malaysia Medical Insurance Premiums To Rise Up To 70% In Year 2025 – Rising Profits Reveal Bluff Behind Spike In Healthcare Costs
26 November, 2024
Medical insurance premiums are expected to rise between 40 and 70 per cent next year, following notices sent by insurance providers to policyholders citing the rising cost of medical care in private hospitals as the primary reason.
According to a Utusan Malaysia report, many users have opted to cancel their medical insurance policies as they can no longer afford the increasing premiums that need to be paid every month.
As an alternative, they choose to use insurance provided by their employers or opt to use government hospital services.
The majority of medical insurance cardholders have expressed dissatisfaction and questioned these increases, which they believe are not only burdensome but also unreasonable.
One user, who wished to be known as Hamidi, said that he had already received a letter from his insurance company stating that the premium increase would take effect in February next year.
“This year, the company has already raised the premium by over RM40. Next year, it will double. I used to pay RM188.47 a month, and now I have to pay RM237.34, even though there was a previous increase last year, from RM157.69 to RM188.47.”
“The question is, why does the premium increase every year? This is burdensome for us,” he said yesterday.
Hamidi said the increase was very significant and raised many questions.
“It seems like an annual event. Every time we ask for an explanation, they say it is due to the increase in treatment costs. But what is the proof that treatment costs increase every year? Is the rise caused by services from private hospitals, and do we even know what the guidelines are for each patient?” he asked.
Another user, Safie Wahab, said his insurance policy had also increased by RM133, from RM244 to RM377 per month.
He has even considered the possibility of stopping the payments in the future.
“Perhaps a time will come when people can no longer afford health insurance, and current policyholders may just let it lapse,” he said.
Utusan Malaysia attempted to obtain clarification from several insurance companies but has yet to get a response.
Meanwhile, Consumers Association of Subang and Shah Alam (CASSA) president Datuk Seri Dr Jacob George said it was not reasonable to increase insurance premiums given the current cost of living.
“There is a limit to these increases. How much money are they spending to cover policyholders compared to the amount they receive from premiums? Moreover, at times, the procedures for policyholders to make claims are quite complicated,” he explained.
He also called on insurance companies to reveal their annual losses if they intend to raise premiums.
“They need to show their losses. If this increase happens, it does not reflect the approach of a Madani Government. Therefore, don’t allow such increases,” he said.
Bayan Baru member of parliament Sim Tze Tzin said that his office would be meeting not only with insurance companies but also with private hospitals to gather more information.
He and other PKR MPs have started an initiative to collect information on the rising charges of private hospitals and medical insurance premiums.
“We have already received 52 complaints, and we want more people to file complaints so we can learn more, in addition to addressing the issues surrounding private hospital charges,” he said.
An insurance consultant who only wanted to be known as Ahmad said the increase in medical insurance premiums was not new.
“There are two types. One is called ‘step-up’, where the rate increases every three years. However, during this period, there will be repricing (a review of the pricing) depending on factors like the economy, inflation, and medical charges.
Source : NST
Rising profits reveal bluff behind spike in healthcare costs
An increasing number of people are badly affected by the unreasonable spike in medical fees charged by private hospitals.
This has prompted the insurance industry to follow suit and raise their medical insurance premiums, forcing people to cancel their policies and turn to government hospitals.
Thus, it is ironic that while people pay their premiums faithfully, the insurance giants and private hospitals have now started to blame each other for the rising cost of healthcare.
It is therefore also unfair for Bank Negara Malaysia (BNM) to blame “overconsumption”, giving the impression that the guilty ones are those in desperate need of healthcare services.
Though private hospitals and the insurance industry claim that the costs for their businesses are unsustainable, large businesses in both industries have recorded increased profits this year.
According to a recent report by Code Blue, a prominent hospital group was said to have recorded a net profit of RM623 million for the second quarter of this year, more than double a year earlier.
Meanwhile, a well-known insurance company was said to have recorded the group’s profit after tax of about RM1.1 billion for the six months ended June 30, representing an impressive 33 per cent higher revenue than the same period last year.
That being the case, how can both industries then claim that their businesses may not be “sustainable” because of increasing costs?
The Health Ministry should be regulating private hospitals by not allowing them to charge as they like, while BNM shouldn’t be buying the narrative put forth by the insurance industry.
Source : NST
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