According to AON’S 2022 Global Medical Trend Rates report, Malaysia's medical inflation rate is at 12%, which is six times higher than the annual general inflation rate. This has made us one of the top four countries in the Asia Pacific with the highest medical inflation rates.
Do you know that medical cost in Malaysia has increased by an average of eight to nine percent annually between 2013 and 2018, which is similar to the annual global inflation trend of eight percent, which is according to a study done by the insurance and takaful industry?
And in between 2016 to 2019, medical claims have grown by 11.6% a year. At the same time, the pressure is felt by the underwriting performance of health insurance providers. This is due to rising claim volumes and the amount that has outstripped the increase in premiums.
Over the past four years, health insurance premium has grown on average by 9.5% a year. Over time being, 96 health insurance products have been repricing and affecting 4.5 million policies. This has become a concern because insurance premiums become more expensive, making coverage for health insurance become unaffordable to many.
What is causing medical cost inflation?? There are a few factors we can look into: 1. Medical advancement
Thanks to new technology and medication, the quality of healthcare have improved significantly. However, it also means higher medical costs, to fulfill the
demand for qualified health professionals and medical instruments.
2. Increased utilization of health services
More people are using healthcare services more frequently, which could be due to the fact that non-communicable diseases are on the rise in Malaysia. Plus, there is a higher demand for medical treatment from older people, as illnesses and disorders become more common. Such as Diabetes, Hypertension, Cholesterol, and heart issues.
3. Unhealthy lifestyle choices
Non-communicable diseases due to occupational health problems, sedentary lifestyles, and bad eating choices are costly to treat, and may require long-term treatment.
All of these 3 factors has contribute to high medical inflation rate and at the same time, repricing or revision for medical insurance is needed. Medical insurance repricing or revision involves revision of premium or insurance coverage according to current healthcare costs. The adjustment will take relevant factors into consideration such as increases in hospital and doctor charges, advancement in medical treatments and medication, as well as increasing demand for better healthcare services.
Should you be worried about medical cost inflation? Well.... Rilek ar. Chill.
All you need to do is just to choose medical protection that can sustain you in the long run, covers unprecedented health conditions such as pandemic-related sickness, and most importantly medical insurance is able for you to gain access to the latest medical treatment available. And of course, don’t forget to start a healthy lifestyle to help you Live Longer, Healthier, and Better Live.
Planning is very important, especially in these tough times. You do not want to fall on the pinch of the financial burden when sickness happens. With good medical and health insurance coverage you can beat the burden of medical inflation while getting quality treatment without worrying about how much it will cost you.