Kuala lumpur: Greater collaboration between the public and private sectors, insurers, and hospitals is needed to tackle rising medical inflation and keep healthcare affordable, said Allianz Life Insurance Malaysia Bhd chief executive officer Giulio Slavich. He emphasized that sustained high medical inflation could eventually push healthcare towards unaffordability, especially as more than one-third of Malaysia's health expenditure is paid out-of-pocket.
According to BERNAMA News Agency, Slavich highlighted the need for collaboration among the public system, the private system, insurers, and hospitals to find solutions that can provide better access to healthcare for more Malaysians. He expressed concern about the financial distress faced by many Malaysians due to unexpected medical expenses, noting that a significant portion of the population struggles with out-of-pocket healthcare costs.
He further pointed out the financial challenges families face after a critical illness diagnosis. While medical advancements have improved survival rates, they have also exposed families to financial crises due to loss of income, depletion of savings, and ongoing financial commitments.
In 2025, Allianz Life paid RM1.33 billion in claims to Malaysian families, with data showing a rise in critical illnesses among younger Malaysians. Since 2022, there has been a 29% increase in cancer-related critical illness payouts, a 95% rise in stroke payouts, and a 22% increase in heart disease payouts.
To address these challenges, Allianz Life recently launched HealthCover Prime, a critical illness solution aimed at providing Malaysians with greater financial protection against serious health conditions. Slavich also mentioned the upcoming base Medical and Health Insurance/Takaful (MHIT) plan, which aims to offer more affordable options to those without private medical insurance.
The MHIT initiative, currently in a pilot phase, is set for nationwide rollout in early 2027. It seeks to address structural gaps with a tiered co-payment mechanism to encourage treatment at hospitals with moderate and transparent fees. Slavich indicated that the base MHIT plan would offer a different level of affordability and incorporate measures to contain medical inflation, including access to designated private hospitals providing less expensive services and other cost-containment mechanisms.