How does MediAsas address the issue of rising medical costs?

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MediAsas Addresses Rising Medical Costs Through Affordability and Structured Coverage

MediAsas is set to launch in 2027 as a voluntary medical insurance and takaful plan with basic monthly premiums starting from RM65, specifically designed to offer a more affordable alternative for middle-income Malaysians. This initiative is part of the broader RESET strategy, introduced in March 2025 by the Finance Ministry, Health Ministry, and Bank Negara, aimed at combating medical inflation which saw costs rise by 15% in Malaysia in 2024, exceeding the Asia-Pacific average.
Introduction of an Affordable Entry-Level Product

The core of MediAsas's strategy to address rising medical costs lies in its accessibility. With monthly premiums beginning at RM65 for the basic plan, it targets middle-income individuals and families who have found conventional medical insurance premiums prohibitive. This plan is not a social insurance programme but a voluntary option, with premiums potentially payable via monthly income or the Employees' Provident Fund (EPF) Account Sejahtera, ensuring a broader segment of the population can access essential medical protection.
Structured Coverage Limits and Benefits

MediAsas provides a defined annual coverage limit of RM100,000, which automatically increases to RM150,000 upon reaching the age of 60. This limit is considered sufficient to cover approximately ten average hospital admissions annually, based on 2024 figures. The basic plan encompasses essential medical services including hospitalisation costs, professional fees, medications for serious illnesses, emergency services, and acute care for specific common ailments such as dengue and pneumonia. A Standard Plus option is also available, offering a higher annual coverage limit of RM300,000.
Co-payment Structure to Encourage Panel Hospital Use

To manage healthcare utilisation and keep costs sustainable, MediAsas employs a two-tier co-payment system. Policyholders face a RM500 deductible per disability when treated at panel hospitals. However, at non-panel hospitals, the deductible remains RM500 but is supplemented by a 20% co-payment, capped at RM3,000 per disability. From age 61, the deductible for both categories rises to RM1,000, aligning with the increased annual coverage limit. This structure incentivises the use of in-network healthcare providers, thereby helping to control overall medical expenditure.
Safeguards and Continuity of Coverage

MediAsas incorporates significant consumer protections, including a "no-look back" clause that prevents insurers from denying claims based on pre-existing conditions by reviewing past medical records. Furthermore, it is a standalone protection plan, meaning premiums are dedicated solely to insurance coverage without being bundled with investment products. In line with regulatory requirements, insurers must offer MediAsas as their entry-level product, facilitating easier transitions for individuals moving between insurers or from employer-sponsored plans, thereby ensuring continuity of essential medical coverage.

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How does MediAsas address the issue of rising medical costs?

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