Factors Driving the Increase in Medical Insurance Premiums

Many of us would have seen the news on higher medical costs or even experienced it first-hand when having to foot the bills.

Global medical inflation is expected to be 10.2% whilst for Malaysia, it was reported to be 15.0%. This is a sharp contrast vs. general inflation rates of 5.9% globally and 2.8% for Malaysia.

Factors driving up medical costs

i) Higher rates of disease

Malaysia's Ministry of Health (MOH) estimated that 1 in 5 Malaysians are living with diabetes, 1 in 3 living with hypertension, and nearly half are overweight or obese. Hence, more Malaysians need to seek medical treatment, and more frequently.

MOH and the World Health Organisation (WHO) further reported that noncommunicable diseases (NCDs), particularly cardiovascular diseases, diabetes and cancer, annually cost the Malaysian economy upwards of RM 9.65 billion.

ii) Growing number of elderly

As people age, the occurrence of diseases increases. In turn, there is higher demand for more and higher quality medical treatments. When that demand is met, our lifespans also increase, further increasing that demand.

On average, male and female newborns in 2020 can expect to live to the ages of 72.6 and 77.6 years, respectively. If they were born 50 years earlier in 1970, their average life expectancies would only have been 61.6 years and 65.6 years respectively.

iii) Developments in medical technology

Advancement in medical procedures, equipment and medicine come along with higher investment and maintenance cost for healthcare providers. The need for a skilled workforce to deliver and maintain quality healthcare adds to the overall cost.

Higher medical costs translates to higher medical claims. Insurance providers may adjust premiums to ensure that the entire medical insurance portfolio remains sustainable for a longer term.

How to deal with rising medical costs

i)Take preventive measures

Leading a healthy lifestyle, regular health screenings and vaccinations can prevent the cost associated with more expensive treatments needed when sick or when an ailment worsens.

ii) Compare costs

For elective or non-emergency surgeries and hospital admissions, ask and compare costs across hospitals.

iii) Know your bill

Get an itemised bill, verify the items on it and ask questions on the items billed especially if the amount seem high to you.

• One essential thing to do to manage rising medical cost is to review your medical insurance plan coverage to ensure it serves your future needs.
  
• Consider medical insurance plans such as FWD Medi First which provides a 10% increase in annual limits and RM10 increase in hospital room & board every 3 years to help cope with medical inflation.
  
• There are plans up to RM5 million annual limit and no lifetime limit so that you don't have to worry about rising medical bills. Sign up for the medical plan that also protects your future needs, FWD Medi First.