Malaysia eyes health fund to boost public healthcare services

Malaysia eyes health fund to boost public healthcare services | Insurance Business Asia

Insurance News

Malaysia eyes health fund to boost public healthcare services

Minister considers the implications of creating a comprehensive health fund

Insurance News

By
Jonalyn Cueto

In a bid to bolster Malaysia’s healthcare infrastructure, the Health Ministry is deliberating the creation of a National Health Fund aimed at consolidating diverse funding sources, including taxes and non-tax revenues, such as taxes on sugar-sweetened beverages. Health Minister Datuk Seri Dr Dzulkefly Ahmad unveiled this initiative during a Dewan Rakyat session on Wednesday, highlighting its potential to revolutionize public healthcare financing.

“This initiative aims to raise awareness among stakeholders about the significance of health financing, encouraging their participation in driving positive changes in healthcare financing,” said Dzulkefly, responding to queries from legislators.

Addressing concerns over Malaysia’s high out-of-pocket healthcare expenses, Dzulkefly outlined plans to enhance spending efficiency to alleviate this burden.

“[We] acknowledged that the burden of out-of-pocket (OOP) healthcare expenditure, which stands at 37 per cent, is among the highest compared to countries with similar economic standings to Malaysia,” Dzulkefly said. “The ministry is currently studying and detailing the direction of the Healthcare Financing System reform, which will be announced in the near future.”

Responding to inquiries on rising medical inflation, Dzulkefly urged private healthcare providers to adopt value-based healthcare models over fee-for-service structures. He stressed the importance of outcome-based payment systems to curb healthcare costs without compromising quality.

Regarding co-payment requirements in medical and health insurance products, Dzulkefly called upon Bank Negara Malaysia to issue clear guidelines to avoid public confusion and potential overcrowding of public health facilities.

“I believe it’s crucial for BNM to strategically communicate on this matter to prevent surprise effects, where we will see on social media many decided to opt out of insurance, subsequently overcrowding the public health facilities,” Dzulkefly said. “Therefore, I urge the BNM to provide clear guidelines. We will support (the move), if it did not burden the people.”

The Health Ministry plans to unveil detailed reforms in the Healthcare Financing System soon, promising a strategic roadmap that reflects Malaysia’s healthcare realities and global standards.

Do you have something to say about this story? Let us know in the comments below.