Wednesday, March 22, 2023

Health Insurance Scheme Premium Allegedly Increased 10 Fold Over 12 Years

NewsHealth Insurance Scheme Premium Allegedly Increased 10 Fold Over 12 Years

Most would have argued that owning a medical card is the bare minimum in the modern society, where the cost of healthcare is skyrocketing.

Nonetheless, the cost of healthcare is the only thing that is increasing at such a rate, and insurance premiums are the next.

According to Oriental Daily, medical card premiums have soared 10 fold over the past 12 years. It was reported that a retiree had his insurance premium increased from RM856 to RM8,124 over the period, making it unaffordable for him.

As a result, the retiree, in his 70s, was forced to terminate the insurance policy.

It was reported that after his retirement, the man had worked as a tour guide and insurance agent for 2 years to earn himself a living wage. Given the minimum wage he make, he was no longer able to pay for the exorbitant premium.

Meanwhile, he also said that the insurance company had not given him a clear explanation as to why the premiums have skyrocketed.

Facing this unfairness, he went to the MCA Civil Society Movement Bureau to make a complaint and to create an awareness to the public on the issues on the exorbitant premiums.

In a press conference on Saturday (23 October), the bureau’s chief, Ng Kian Nam, had represented the retiree to speak up for the issue he faced. He said the retiree first bought the health insurance policy in 2009 and the premium was only RM856.46 at that time.

However, as time passes, the insurance company has been adjusting the premiums along the years and the premium he paid for the current year had been adjusted to RM5803.26.

“The insurance premiums were just adjusted, but we have recently received another notice from the insurance company that the premiums will be adjusted to RM8,124.57 for next year.”

Ng said that the premiums had been increased for 10 fold since the first year the retiree had purchased it. For a retiree who has no income at all, he simply cannot afford to continue to pay such expensive premiums. For this, he can only choose to terminate the policy.

Ng also hopes that these insurance companies can provide a reasonable explanation on why had the premiums being adjusted such extend.

Meanwhile, Ng said this is not the first complaint he received regarding the hike in insurance premiums.

Ng also hope that these insurance companies will be held accountable for, and that the Bank Negara Malaysia (BNM) will take an active role in monitoring the insurance companies while setting their premiums.

He added that if these insurance company fails to provide a valid explanation, they serve the right to bring the matter to the High Court to challenge the insurance company’s unreasonable increase in regulations and fight for consumers’ rights.

What do you think about this? Share your thoughts!

Watch the press conference here:


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