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Last week, the government released a White Paper proposing a new voluntary medical insurance plan. The base MHIT plan would be risk-rated, with premiums based on factors like age, gender, and health status, and would cover individuals up to the age of 85. It’s expected to be rolled out early next year, so what questions should we be asking about it before then? On this episode of #ConsiderThis Melisa Idris speaks with Prof Dr Sharifa Ezat Wan Puteh, Professor of Public Health Medicine at UKM’s Faculty of Medicine, and Dean of its School of Liberal Sciences.

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00:00Hi, welcome back to Consider This. I'm Melissa Idris. Let's continue our discussion about Bank
00:15Negara's proposal for introducing a base medical and health insurance takaful plan,
00:22also known as the base MHIT plan. Joining us on the show now is Professor Dr. Sharifa
00:27Ezat Wan-Puteh, who is a professor of public health medicine at UKM's Faculty of Medicine.
00:34She's also the dean of the School of Liberal Science there. Prof, thank you so much for joining
00:39me on the show today. So tell me when you first read the white paper, what was your initial reaction?
00:46What did you think about what was being proposed? Yeah, thank you so much, Melissa, for having me
00:51here. I think the white paper which was proposed by sort of Ministry of Health, of course, it was a
00:57collaboration of experts as well. About two years ago, yeah, 2022. So the white paper sort of designated
01:05a few pillars how to strengthen the so-called healthcare in Malaysia. And of course, it will
01:11include, definitely include not only the public, but also the private sector. And one of the strengths
01:18of this white paper, not only that it takes into consideration of working together, but also it
01:23looks at future healthcare reforms and how to tackle not only things like aging, NCD, but also emerging
01:31diseases. So these are some of the strengths of the white paper. Not only is it timely, but it is also
01:37used as, you know, the roadmap ahead for healthcare in Malaysia. Yeah. So if we were to look at the base
01:43MHIT plan that was big, that's now being proposed. And the idea is that it will maybe provide some
01:52insurance cover for the people who don't have insurance cover, don't have enough insurance
01:57cover. There are people who have come out to raise concerns about how the plan is designed. There are
02:04some people who say this is a great first step. Where do you sit, Prof? Do you see benefits in introducing
02:11this plan now? Do you see risks in the way it was designed? Right. Okay. This perspective is more of
02:18myself. Yeah. And of course, I look at, you know, published literatures and sorts on answering this
02:25forward. When we want, if Malaysia is to go forward with a Malaysia healthcare reform, and some of the
02:32proposed area would be to include some sort of premiums by certain population. Now, this premium can cover
02:39a lot of population. In general, we have so-called the lower income, the middle income, and of course,
02:45we have what we always say as the T20 or the top-level income earners. Now, this is not a problem for the
02:51top-level income earners. They can always go into their private health insurance or their coverage by
02:56their own providers. So this is not an issue. So more of the plan by Bank Negara so-called, so the MHIT,
03:03or this will also include some of the micro insurance for the lower and also middle income
03:08population. Now, of course, the lowest income of those and also the persons who do not or not able
03:15to pay premium for certain reasons, these are basically covered by the government. So the public
03:19sector is going to be there as a safety net as well. So having said that, it's not to say that
03:25I do understand that not all of us can actually pay premium for certain reason. Now, this very much
03:30depends on your income level and whether you're willing to pay and things like that. So the insurance
03:36by right, they should also cover not only the lower income or also the middle-level income, but also the
03:43top-level income earners who are able to pay more premium. So in a way, the coverage will cover all of
03:48these. But of course, the benefit will also depend on how much you pay the premium, right? I mean, I mean,
03:53looking at, you know, even in the private sector, this very much depends on your premium level and the
03:59coverage that it brings. But coming from the so-called the bank negara and also the MHIT, I foresee that
04:05they will have more coverage, you know, some of these things, example for essential drugs, essential
04:10medicine, and of course, essential procedures, this will be covered through some of the benefit packages
04:15by this insurance premium. The premium will be the tricky part because, you know, we can always say
04:21that you pay premium, but how much, you know, what is the level that people are able to pay, you know,
04:27comfortably without breaking the bank, you know, and things like that. But of course, you know, this fund,
04:32the central fund will be used to sort of cover or reimburse the providers that's going to provide
04:39services for the population.
04:40Right. So do you think it's a good idea? Because we've been having conversations about the rising medical
04:47inflation, the burden on the public sector, healthcare, how would this help the broader
04:56reform agenda? Does this, how does this move the conversation from, how does this change the game
05:04in any sense of the word, Doctor?
05:07Okay. If you look at, in general, for those who are paying or going to pay the premium later on,
05:15there will be packages or what we call as benefit packages that will be covered, that will cover
05:22this population. They will be able to access healthcare providers which are in the package,
05:28meaning that if, let's say, if you want to go into a private hospital, as long as this private
05:33hospital are also engaged in providing healthcare for the MHIT premium providers, the population are able
05:41to go and seek services even in the primary care or in the private hospitals. So then, then it depends
05:50on the benefit packages, of course, and also, you know, how much premium that you actually pay. So this
05:55very much depend on that. But you are able to have more options, meaning that at the moment now,
06:02let's say I am a lower income population or a middle income population, my access would only be to the
06:09public providers, right? And this is one of the reasons why, you know, there's a long queue, there's
06:14so many dissatisfaction, you know, some of the drugs may be too generic and, you know, there's so many
06:20complaints about this. But what happens is that once you have so-called the premiums for those who are
06:26paying the premiums, they will have more options. So there will be not only the public providers, but also they
06:33are able to engage private providers who are in the sort of medical card. So then you will have more options
06:42to go to the private sector nearest to you. At the moment, if I'm a middle income or lower income, and I don't have
06:48private health insurance, or my employer does not pay for me, I'm not able to access private healthcare.
06:53Okay, so this is one of the, I guess, tools the government is rolling out to help people maybe
07:03alleviate some of the burden on the public healthcare system. But I want to ask you, the detail, the devil
07:09is in the details, and it's all about implementation for this. If I understand correctly, they're looking
07:14to roll out this plan next year. What do you think needs to be clarified in the time period in between,
07:21or what needs to be refined to make sure that it achieves what it is setting out to do?
07:28Right. I think more information needs to be disseminated to the population. Not a lot of people
07:33sort of aware of this. And we must engage the media, not only example, Melissa, you are in the media as well,
07:41and also some NGOs who are able to correctly point out that this premium by right, there is still a
07:48safety net, which is the public providers. But for those who are able to pay premium, or they have
07:54coverage by their employers, this is actually a benefit, because then they will be able to have
08:00access to more providers, either the public or the private. And this would give more choice, and they are
08:06able to seek healthcare, you know, a wider choice, but also, I think it will be faster in some sense.
08:14So but then, you correctly pointed out, you know, the devil is in the details. So we must make sure
08:21the matching of the population income with the premium, we don't want, you know, a premium that is
08:26too high for certain level of population. Example, if you're earning just 2000 per month, you're not able to
08:33pay a monthly of, let's say, 100 premium per month, example. So the matching of the premium level and
08:39also the population must be there. So this is more targeted towards, you know, a certain amount of
08:44income. So the middle level income, definitely, and also maybe even the lower income, but they are
08:50sort of the upper, lower income, they are able to pay premium, or they are covered by their employers.
08:55So with that, that clarity needs to be there, because people are doubting whether one, how big is the
09:02premium that you have to pay, and people are scared because there's a lot of insurance now,
09:06that incurs a high premium. And in the end, that most of these are, you know, they have to cancel
09:12their account or whatever, because they are not able to sustain the premium level that is being
09:18imposed on them. So things are some good things. And a quick one, I understand that it is all the way,
09:24it will cover people all the way up to the age of 85. Why is that significant, Prof?
09:29Prof? Ah, I think this is very important because the one that consumes the some of the most health
09:35care in general would be the elderly. And this is where all of us are going to go at one point in
09:40time. And it's Malaysia, as you know, are already going transitioning into the aging population sort of
09:46level, where you have a high number of people aged 60 and above, or 65 and above, depending on which
09:51country you are. So they are the ones that consume most of the, you know, healthcare being, you know,
09:57they are imposed with chronic diseases, they have the least immune system. And this is where the
10:02inpatient care becomes a burden for a lot of people. So I think that coverage is, I think,
10:07is very important, you know, having an insurance coverage for elderly as well. Most of the private
10:12healthcare, because they are risk rated, Melissa, they do not actually cover elderly care because they
10:18have all these existing problems. You have osteoarthritis, you have prior cesarean, you have blah, blah, blah,
10:25and so on. So they don't actually include elderly or people who have existing diseases into the
10:30network. So what happens most of the time, example in certain countries such as South Korea and things
10:34like that, even though you are elderly, you were covered before. But once you age a certain age,
10:40or you have some very chronic diseases, you are being opt out and you have to pay yourself. So now this
10:45is the problem. So that will lead to catastrophic health expenditure. And this is something that we don't
10:50want to happen to Malaysian population. Definitely. Prof, thank you so much for your time. I really
10:55appreciate you joining us and sharing some of your insights. That was Professor Dr. Sharifa Izzatwan
11:00Putih, who's wrapping up this episode of Consider This. I'm Melissa Idris, signing off for the evening.
11:05Thank you so much for watching and good night.
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