KUALA LUMPUR (Feb 21): The Public Accounts Committee (PAC) is set to commence closed-door proceedings next week on rising private hospital fees and insurance premiums, as well as their impact on public healthcare.

A total of 10 sessions have been scheduled, during which several industry stakeholders — including representatives from the health insurance industry, private hospitals, the Finance Ministry, the Health Ministry, Bank Negara Malaysia (BNM), non-government organisations, and academics — will be summoned by the parliamentary watchdog.

"We expect this to be a lengthy process, and we hope to complete the proceedings within three months and present the report to Parliament during the June sitting," said Bayan Baru Member of Parliament Sim Tze Tzin.

Sim, one of the 14 members of the bipartisan PAC, said this during a news conference following the committee’s public hearing on insurance premiums and hospital charges at the Parliament building on Friday.

Private hospital bills in Malaysia have come under scrutiny after insurers and takaful operators announced plans to increase policy premiums by 40% to 70% in 2025. However, the plan was scrapped following BNM’s intervention and the introduction of interim measures amid public outcry.

These measures include spreading out premium increases over at least three years and pausing certain premium adjustments for individuals aged 60 and above.

Malaysia recorded a 12.6% medical inflation rate in 2023 — more than double the global average of 5.6%.

Earlier, 550 people attended the second public hearing session at the Parliament building to voice their concerns on the rising costs of health insurance premiums and hospital charges.

The three-hour hearing, organised by the PAC, drew a diverse group of attendees, including medical practitioners, insurance agents, representatives from private healthcare operators and pharmaceutical companies, as well as civil servants — all hoping their concerns would be officially recorded.

Some participants brought their medical bills, sharing experiences of exorbitant charges, while others alleged unethical practices within the private healthcare-insurance ecosystem.

Many also proposed potential solutions, including calls for the government to regulate private medical charges and insurance premiums as controlled goods.

However, some attendees disagreed with placing the blame solely on private healthcare operators. Instead, they urged the government to address the root cause, which is the escalating costs of private healthcare services.

"The cost of drugs per se and the cost of treatment have gone up. So, you cannot blame private hospitals alone," former president of the Malaysian Oncology Society Datuk Mohamed Ibrahim A Wahid told The Edge on the sidelines of the event.

This marks the first time the PAC has conducted a public hearing on a subject under its review. The first session was held at AC Hotel in Bukit Jambul, Penang, last week.

According to PAC deputy chairperson Teresa Kok, a total of 730 people attended both sessions. She assured that all input gathered during the proceedings would be recorded and included in the committee’s report to Parliament.

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