MediAsas to Offer Malaysians Health Insurance From RM65 in 2027

KUALA LUMPUR, AUGUST 2026 – Malaysians seeking more affordable medical protection will be able to enrol in MediAsas from 2027, with basic monthly premiums starting at RM65.

Previously known as the Base Medical and Health Insurance and Takaful Plan, MediAsas is designed mainly for middle-income Malaysians who can no longer afford conventional medical insurance or require a simpler and more affordable alternative.

The programme entered its pilot phase in late July 2026 for final testing and refinement before its nationwide introduction next year.

MediAsas forms part of the government’s broader effort to address rising healthcare and insurance costs.

Bank Negara Malaysia reported that medical costs in the country increased by 15% in 2024, significantly higher than the Asia-Pacific average of 10%.

The increase was linked to insurance and takaful claims exceeding the premiums collected by insurers and takaful operators, contributing to higher medical insurance charges for policyholders.

Public concern over rising premiums led Bank Negara to introduce temporary measures in late 2024, including staggered premium adjustments and a temporary repricing freeze for policyholders aged 60 and above.

In March 2025, the Finance Ministry, Health Ministry and Bank Negara jointly introduced the RESET strategy to address medical inflation and improve the sustainability of healthcare financing.

MediAsas is one of 11 major initiatives under the strategy. Although supported by the government, it is not a compulsory social insurance scheme, and participation will remain voluntary.

Policyholders may pay their premiums using monthly income or savings from their Employees Provident Fund Account Sejahtera.

Eligible Malaysians will be able to enrol before reaching the age of 70, while coverage may continue until the policyholder turns 85.

Under the basic option, MediAsas provides an annual coverage limit of RM100,000. The limit will automatically increase to RM150,000 once a policyholder reaches the age of 60.

The plan covers hospital room and board, intensive care, operating theatre charges and professional fees involving surgeons, anaesthetists and physicians providing treatment during hospitalisation.

It also covers hospital supplies, medications and selected high-cost outpatient medicines for serious conditions such as cancer.

Other benefits include ambulance services, day surgery and outpatient treatment for acute illnesses such as dengue, influenza A and B, bronchitis and pneumonia.

For consumers seeking greater protection, a Standard Plus option will provide annual coverage of RM300,000 at premiums expected to remain below prevailing market rates.

The enhanced plan is intended particularly for individuals who receive medical benefits from their employers but want additional protection against major healthcare expenses.

MediAsas will use a two-tier co-payment structure based on whether treatment is obtained from a participating panel hospital or a non-panel facility.

At panel hospitals, policyholders will pay a RM500 deductible for each illness or accident, with no further co-payment required.

At non-panel hospitals, policyholders will pay the RM500 deductible and an additional 20% of the medical bill. The co-payment will be capped at RM3,000 for each illness or accident.

For policyholders aged 61 and above, the deductible will increase to RM1,000 for both panel and non-panel hospitals, alongside the higher annual coverage provided to older members.

Bank Negara said the structure is intended to encourage policyholders to obtain treatment through participating providers and discourage unnecessary or excessively costly medical services.

The approach is expected to help keep premiums affordable and sustainable over the longer term.

Unlike many medical insurance products currently available, MediAsas will operate as a standalone protection plan rather than being combined with an investment-linked product.

This means the premiums paid by policyholders will be used specifically for medical insurance protection.

Members will also gain access to discounted preventive healthcare services, including health screenings and vaccinations.

One of MediAsas’ main consumer protections is a “no-look back” provision, which prevents insurers from reviewing historical medical records to reject claims based on earlier health conditions or alleged non-disclosure.

Bank Negara will also require insurers and takaful operators offering comprehensive medical plans to provide MediAsas as an entry-level option.

This is intended to give consumers greater flexibility to change providers, reduce their coverage during periods of financial difficulty or move from employer-sponsored benefits to an individual plan without losing continuity of protection.

With medical costs and insurance premiums continuing to rise, MediAsas is positioned as an affordable healthcare safety net for Malaysians who may otherwise be left without sufficient private medical protection.