Joint Efforts Needed To Curb Medical Inflation, Keep Healthcare Affordable -- Allianz
KUALA LUMPUR, Aug 26 (Bernama) -- 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 said sustained high medical inflation could eventually push healthcare towards unaffordability, particularly as more than one-third of Malaysia's health expenditure is paid out-of-pocket.
"There has to be a collaboration between the public system, the private system, insurers and hospitals, all together.
"We are all trying to come to the table to find solutions that can actually service and approach a larger number of Malaysians and hence allow more Malaysians to get better treatment," he told reporters at the "Beyond Survival: The Journey from Setback to Comeback" Media Forum here today.
Slavich said the high proportion of out-of-pocket healthcare expenditure meant that a number of Malaysians could face financial distress when unexpected medical needs arise.
"If you look at the health expenditure in Malaysia, actually more than one-third of this health expenditure is an out-of-pocket expense.
"That means that there is a number of Malaysians that are actually under financial distress because. whenever something happens to them, they are actually paying out-of-pocket," he said.
He noted that a number of Malaysians also faced difficulties coping with even a relatively small amount of additional expenditure.
Earlier, Slavich said while medical advancements have improved survival rates, many Malaysians remain unprepared for the financial impact following a critical illness diagnosis.
"Critical illness is no longer solely a health issue. For many families, it becomes a financial crisis. Medical treatment may save a life, but the loss of income, depletion of savings and ongoing financial commitments can create lasting challenges throughout the recovery journey," he said.
In 2025, Allianz Life paid RM1.33 billion in claims to Malaysian families, while its data showed that critical illnesses were becoming more prevalent and affecting Malaysians at increasingly younger ages.
Since 2022, cancer-related critical illness payouts have risen by 29 per cent, stroke payouts by 95 per cent and heart disease payouts by 22 per cent.
Allianz Life recently launched HealthCover Prime, its latest critical illness solution designed to provide Malaysians with greater financial protection against the long-term impact of serious health conditions.
Against this backdrop, Slavich said the upcoming base Medical and Health Insurance/Takaful (MHIT) plan could provide a more affordable option for Malaysians who currently do not have private medical insurance coverage.
“The idea there is actually to help these people prepare for an event as these people would not have bought private health insurance cover because a comprehensive product is something that goes beyond their affordability," he said.
The MHIT initiative is currently undergoing a pilot phase ahead of its nationwide rollout in early 2027 to help address structural gaps, while its tiered co-payment mechanism is aimed at encouraging patients to seek treatment at hospitals with moderate and transparent fees.
Slavich said the base MHIT plan would offer a different level of affordability while incorporating measures aimed at containing medical inflation.
He said these could include access to designated private hospitals offering less expensive services, as well as other cost-containment mechanisms being developed as part of the broader healthcare reform effort.
-- BERNAMA