Insurance Basics

Rising Medical Insurance Premiums

Did you know that medical insurance premiums have increased by 20% or more this year? (Source: Focus Malaysia). If you’re in your 30s or 40s and working hard to build your future, it’s important to know that medical costs in Malaysia are going up very quickly. While inflation is affecting many things, healthcare costs are rising even faster. If you don’t yet have a medical insurance plan, now is a good time to consider getting one to help protect against rising healthcare costs, which are increasing faster than inflation.

Worried about the increasing cost of your insurance premiums?

Consult our insurance expert, Samuel.

Why Are Insurance Premiums Getting More Expensive?

A number of factors are pushing up the cost of medical insurance. After the pandemic, medical claims have surged by 28%, especially for surgeries that were delayed earlier. This means insurance companies are paying out more, which raises premiums for everyone.

Additionally, the private healthcare system in Malaysia is mostly unregulated, which means hospitals can charge varying amounts for the same treatments. That makes it difficult to predict healthcare costs, driving prices even higher.

Advances in medical technology also play a role. New technology helps doctors detect diseases early and perform less invasive procedures, improving the quality of healthcare and saving lives. However, these advancements come with higher costs for diagnostic tests and treatments, leading to bigger claims. As insurers have to cover these rising costs, your insurance premiums increase as well.

On top of that, many people unknowingly opt for more expensive treatments and services than they need, a trend called the “buffet syndrome” in insurance. This adds to the problem, making insurance premiums rise even faster.

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How to Get Affordable Medical Insurance Premiums?

With these rising costs, it’s more important than ever to make sure you’re not overpaying for your medical insurance. One way to do this is by customizing your premium to fit your exact needs. This means you only pay for the coverage that matters to you, without adding unnecessary extras. Many insurance companies now offer flexible plans where you can choose your coverage based on your lifestyle and health needs.

For example, if you’re generally healthy and don’t go to the hospital often, you may not need a very comprehensive plan. A basic plan could be enough to cover any unexpected emergencies. On the other hand, if you have a family or specific health concerns, like a chronic condition, you might need a premium that provides more coverage to ensure you’re well-protected.

Talk to an Insurance Agent for the Best Plan

To navigate these rising medical insurance premiums and find the plan for you, it’s a good idea to speak to an insurance expert. For instance, Sameul Raj is an experienced insurance expert who has a deep understanding of medical insurance. He can help you understand the latest trends in medical coverage and assist you in finding a plan that is affordable but still provides the protection you need. By consulting an insurance expert like Samuel, you can make sure you’re getting the best deal and lock in a good plan before premiums go up even more. Read Samuel’s interview with iBanding on “Navigating Medical Insurance” to know more.

"Compare plans from different insurers to ensure value for money, and carefully review details to match your needs."

Summary

Medical insurance premiums in Malaysia are rising due to several factors, including a surge in medical claims after the pandemic, unregulated healthcare costs, and advances in medical technology that increase treatment expenses. Additionally, many people unknowingly choose expensive treatments, further driving up premiums. To manage these rising costs, it’s essential to customize your insurance plan according to your specific needs, avoiding unnecessary extras. Speaking to an insurance agent can help you find the right balance between affordability and coverage before premiums increase even more.

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