Latest news with #MHIT
The Star
07-07-2025
- Health
- The Star
First phase of DRG payment model planned for 2026, says Dzulkefly
PUTRAJAYA: The first phase rollout of the much-awaited diagnosis-related group (DRG) payment model is planned for 2026, says Datuk Seri Dr Dzulkefly Ahmad. The Health Minister said DRG's implementation was planned to be done incrementally over time, with its first phase to focus on minor cases. 'It will take time, but we plan to expand it to cover more complex cases as we move along 2026. 'But its implementation will be linked to the planned introduction of the basic medical and health insurance/takaful (MHIT) products,' he said during a press conference at the Health Ministry's office here on Monday (July 7). He also revealed that the group categorisation of patients under DRG would be according to the World Health Organisation's (WHO) existing International Classification of Diseases (ICD) system. He added that the implementation of DRG would be governed directly under the recently formed joint ministerial committee on private healthcare costs. Revealed on June 24, the committee is co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Dzulkefly himself with the goal of reducing private healthcare costs and medical inflation. Dzulkefly also said that there has been a warm reception of DRG's planned implementation from across healthcare industry stakeholders without any major issues expected so far. 'We might face problems like possible glitches or hiccups when DRG is implemented, but I believe we will be able to easily fine-tune it when that happens with the support from all stakeholders,' he added. Under the DRG payment model, hospital patients would be categorised into groups based on diagnoses, procedures and expected length of stay. A fixed payment rate would then be fixed for each of these groups, meaning patients would only have to pay standardised rates for treatment instead of being charged depending on how many services they receive in hospitals. Dzulkefly also addressed concerns of the ministry's Rakan KKM programme being a privatisation of public healthcare, adding that it would only apply for elective patient cases. 'Rakan KKM is not a privatisation programme as it does not use private funds but is a government investment financed by government-linked investment companies (GLIC). 'It is designed to provide only patients with non-emergency or elective cases the ability to expedite their elective procedures, while for emergency cases, everyone will still receive equal treatment without any priority. 'This means patients with elective cases will now have the choice to either wait in the regular queue or obtain faster services through Rakan KKM,' he said in the same press conference. He added that revenue generated from the Rakan KKM programme would be reinvested into public healthcare facilities.
New Straits Times
26-06-2025
- Business
- New Straits Times
Malaysia mulls basic medical insurance scheme to tackle rising healthcare costs
KUALA LUMPUR: The Malaysian government is evaluating the introduction of a basic medical insurance scheme aimed at alleviating the financial burden of escalating healthcare costs on the public. Finance Minister II, Datuk Seri Amir Hamzah Azizan, said a joint committee, comprising the Ministry of Finance (MOF), Ministry of Health (MOH), and Bank Negara Malaysia, has been established to study the matter. "Medical inflation is a significant concern for the people. To address this, we have brought together various stakeholders through a joint committee to explore ways to mitigate the impact of rising medical costs," he said at the launch of SME Bank's Budget 2025 financial initiatives. According to Amir Hamzah, one of the proposals under discussion is the introduction of a second account contribution under the Medical and Health Insurance/Takaful (MHIT) product. "Discussions are ongoing to develop a basic insurance scheme for Malaysians. I urge everyone not to speculate on its structure just yet." "Let the relevant parties, including Bank Negara and other stakeholders, deliberate on finding the best possible approach. Once the proposal is finalised, it will be presented in detail," he explained. The MHIT, central to the discussions, was introduced to offer Malaysians affordable access to medical and health insurance or takaful plans. However, with medical costs outpacing general inflation rates, the government aims to enhance the scheme to ensure it continues to meet public needs effectively. On the potential inclusion of SOCSO contributions in the proposal, Amir Hamzah said, "All recommendations are being considered." "However, for now, we are allowing Bank Negara and the involved agencies to discuss the most effective way to establish a basic insurance product for the nation." The outcomes of the discussions and the proposed structure will be announced after thorough deliberations and consultations with relevant stakeholders.
The Star
24-06-2025
- Health
- The Star
New committee addresses private healthcare costs
PETALING JAYA: The Finance and Health Ministries have established a joint ministerial committee on private healthcare costs (JBMKKS) to guide and monitor initiatives aimed at reducing private healthcare costs and medical inflation. The committee will include representatives from both ministries and Bank Negara Malaysia supported by a consultative council comprising key stakeholders in the private healthcare ecosystem. 'These representatives will include those from private hospitals, healthcare professionals, insurance and Takaful providers, consumer advocacy groups, and academia. 'The council will provide a dedicated platform for industry players to work together and contribute their expertise towards our shared goal of ensuring affordable and accessible private healthcare for all Malaysians,' both ministries said in a joint press statement on Tuesday (June 24). Co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad, the committee will plan and implement solutions to provide better healthcare value. This will include building on previous initiatives, such as implementing co-payment requirements by Bank Negara and interim measures to reduce the impact of medical premium adjustments for policyholders from 2024 to 2026. The committee will also work on Bank Negara's health financing initiative to reduce medical inflation, the Reset framework, focusing on five strategic thrusts, starting with restructuring medical and health insurance/Takaful (MHIT). This will include increasing price transparency, strengthening the digital health ecosystem, expanding cost-effective care options, and reforming provider payment systems. 'The framework reflects a holistic commitment to implement solutions such as value-based care, prioritising health outcomes. 'Such initiatives will deliver tangible benefits to all Malaysians by easing congestion and overcrowding in public hospitals and clinics,' Dzulkefly said in the joint press statement. Having held its first committee meeting on Tuesday, the ministries said key initiatives were already underway under Reset, featuring the development of basic MHIT products that balance affordability and sustainability. Work is also being done on developing a diagnosis-related group (DRG)-based payment system for phased implementation and enhancing price transparency. 'This joint committee reflects our commitment to collaborate with all stakeholders in shaping a sustainable, transparent, and truly value-driven private healthcare system. 'Ultimately, this is about protecting the well-being of Malaysians and strengthening our nation's resilience,' Amir Hamzah said in the joint press statement. Malaysia's current medical inflation rate stands at a noticeably high 15%, compared with the regional average of 11%, according to data from Aon International Insurance Brokers, as mentioned by Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour on June 18.
New Straits Times
20-06-2025
- Health
- New Straits Times
Private hospitals back EPF plan for insurance payments, call for safeguards
KUALA LUMPUR: The Association of Private Hospitals Malaysia (APHM) has hailed the government's timely proposal to allow Employees Provident Fund (EPF) members to use their Account 2 savings to pay for monthly health insurance premiums. Its president, Datuk Dr Kuljit Singh, said while the plan is welcomed, it must be accompanied by clear safeguards to ensure its long-term sustainability. He said the responsibility now lies with the relevant agencies to determine the most appropriate funding model, whether through EPF or other mechanisms. "APHM fully supports the development of well-designed, evidence-based and data-driven policies, including the proposed basic MHIT (Medical and Health Insurance/Takaful) product. "Key stakeholders such as Bank Negara Malaysia, the Health Ministry, and the Finance Ministry will play pivotal roles in determining the best approach moving forward. "What matters most is that the mechanism serves the people effectively and remains financially viable in the long term," he told the NST. Dr Kuljit said APHM remains committed to working with all stakeholders to address challenges in healthcare financing and the rising cost of treatment. "Our member hospitals are ready to share data, insights, and industry expertise with the government to support policies that are both sustainable and beneficial to all Malaysians," he said. The government proposed the EPF plan to ease healthcare costs, widen insurance access, and relieve pressure on public hospitals. Health Minister Datuk Seri Dr Dzulkefly Ahmad said yesterday that if the proposal is implemented, 16 million EPF contributors could use their savings to access medical care at private hospitals.
The Star
10-06-2025
- Health
- The Star
Value-based healthcare
Medical advances: Dzulkefly (third from right) attending the APHM International Healthcare Conference and Exhibition at the Kuala Lumpur Convention Centre. — YAP CHEE HONG/The Star KUALA LUMPUR: The introduction of basic medical and health insurance/takaful (MHIT) products will mark the first step in the implementation of the diagnosis-related group (DRG) payment model, says Health Minister Datuk Seri Dr Dzulkefly Ahmad. He said MHIT products would steer private healthcare towards a value-based healthcare model with fairer rules for those with pre-existing conditions. 'Introducing DRGs to pay for healthcare services in phases, beginning with this base MHIT product, will be a key driver for value-based healthcare. 'DRGs incentivise efficiency and we expect this will drive innovations in ambulatory and day case surgery, and expand the use of health technologies, which will demonstrate strong cost effectiveness in improving health outcomes while reducing costs,' said Dzulkefly. He added that the Health Ministry is working with the Finance Ministry, Bank Negara and the Employees Provident Fund (EPF) to transform private health insurance and takafuls by developing a base MHIT product. Speaking during the launch of the Association of Private Hospitals Malaysia's (APHM) International Healthcare Conference and Exhibition 2025, he said the Health Ministry has made healthcare financing reform and digitalisation of healthcare services its priority. 'We are also exploring a more diversified health financing ecosystem that combines tax-based allocations, social contributions, employer-based schemes and targeted subsidies, all under a progressive and equitable framework,' he added. Speaking to reporters after the launch, Dzulkefly said the Health Ministry is hoping to introduce the DRG payment model by the end of the year. He said the proposed DRG scheme can start with a simple mechanism in its initial stage. 'Start simple first and after the momentum is developed, go for a complex one,' he added. He also said that Malaysia, especially the APHM and Finance Ministry, have experience in implementing the DRG model. DRG is a payment system that involves paying an amount predetermined by the DRG, instead of paying for each service received. Other countries that have implemented this system include Sweden, Canada and Australia. Dzulkefly was responding to news reports claiming that the government's plans to introduce the DRG system at private hospitals are being put on hold. Commenting on a separate issue, he said the review of consultation fees for private general practitioners (GPs) has been raised to an executive task force chaired by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. Dzulkefly said that after a meeting between the Health Ministry and the National Action Council on Cost of Living (Naccol), it was decided that this issue should be raised to the task force led by Ahmad Zahid. Dzulkefly added that there are no deadlines for finalising the review of consultation fees for private GPs. 'No, but we will tackle this issue at the soonest time possible. 'The Deputy Prime Minister, who chairs the executive task force, will look into the final touches of this,' said Dr Dzulkefly. On May 3, he had said the review of consultation fees for private GPs would be finalised within a month. Yesterday, the Medical Practitioners Coalition Association of Malaysia (MPCAM) had proposed raising private GP fees to a minimum of RM50 and a maximum of RM80. MPCAM had said GP consultation fees have stagnated between RM10 and RM35 for more than three decades since 1992.
