Health insurance – reforms needed (II)

The NST reported on the problem of Medical Insurance

STEPS should be taken to ensure all Malaysians can afford a medical card, since healthcare costs are continuing to rise, says Excellencia Solutions principal owner and certified financial planner Clarence Jacob Chua.
“One way is by allowing people to withdraw from their Employees Provision Fund (EPF) accounts to buy medical insurance.
“Neighbouring countries like Singapore are already practising this.
“After all, one can withdraw from their account to buy a house, why not allow it for health purposes?
“The authorities should understand that for an average family of five, a reasonable medical plan could cost between RM300 and RM400 a month.
“How many families can afford that?”
He believes less than 30 per cent of Malaysians have medical insurance.
“It’s unfortunate that less than a third of the population has personal medical coverage.

I believe there’s more to it than affordability. The whole medical insurance industry in this country needs a shake up!

As we posted earlier on Health insurance – reforms needed:

We need a Government which can properly regulate the healthcare industry. We hope to see:

1) Compulsory health insurance – the reason why the majority don’t have insurance is because they don’t bother. Like seat belts, people won’t put them on if it were not for the law. If you require insurance to drive a car, why not compulsory health insurance for all?
2) Insurance companies cannot deny cover for anyone including the old or those with “pre-existing illnesses”
Imagine being denied car insurance because of a pre-existing accident or if “your car is too old” !!
3) Premiums must be reasonable. A higher premium can be set for higher risk patients but perhaps following the motor car industry model, an NCB can also be applied as a health incentive for those who stay healthy.

The ball is in the Government’s court. Do the right thing.