A key strategic thrust of the RESET strategy is the development of a base medical and health insurance/takaful (MHIT) plan. The base MHIT plan is a voluntary standardised health insurance and takaful plan that is value-based, sustainable and easy to understand.

This White Paper outlines the details on the base MHIT plan, which is developed with the support of Bank Negara Malaysia (BNM), the Ministry of Finance (MOF) and the Ministry of Health (MOH).

It is developed to achieve the following public policy objectives:

• Enable more Malaysians to obtain a base level of financial protection against essential, high-impact healthcare expenditures.
• Channel private healthcare spending more efficiently to better complement universal access to public healthcare services.
• Accelerate progress towards value-based healthcare

The product is designed to provide meaningful coverage for individuals who desire private healthcare coverage and individuals seeking additional options due to the repricing or changes in their existing plans. The development of the base MHIT plan strives to balance affordability and coverage over the life course, while ensuring space for competition between insurers and takaful operators (ITOs) to offer more comprehensive products that cater to different needs and market segments.

By setting a common and accessible baseline for coverage and premium pricing, as well as underwriting and claims practices, it is also expected to strengthen current MHIT offerings by ITOs and improve confidence in the private health insurance and takaful market, pool risks more broadly, and reduce out-of-pocket expenses.

The product design has taken into account feedback and input from over 60 engagements with key stakeholders, consumer focus groups and extensive analyses of available datasets to ensure the product is aligned with reform goals and market needs.

Importantly, the base MHIT plan does not replace but complements the public healthcare system, which will continue to provide Universal Health Coverage for all Malaysians. In fact, the Government has recently increased the public healthcare budget to strengthen and expand services. The base MHIT plan is designed to preserve patient choice. By keeping private coverage affordable, it ensures that more Malaysians have the option to seek private treatment, reinforcing the complementary roles of the public and private sectors.

BNM and MOH are working closely with the insurance and takaful industry as well as associations representing the private healthcare sector to finalise implementation details and operations. The base MHIT plan is expected to be made available to the public from early 2027. For more details, visit bnm.gov.my/MHIT

Read the White Paper

Please also refer to:

• Base MHIT Plan: Widening Healthcare Access and Choice
• Joint Ministerial Committee on Private Healthcare Costs (JBMKKS) Press Release