KUALA LUMPUR (July 6): The government will launch a pilot programme for its Base Medical and Health Insurance and Takaful (MHIT) plan in the Klang Valley by the end of July, with monthly premiums expected to start from around RM60.

Knowns as MediAsas, it will be offered as a standalone medical insurance and takaful protection plan with two product options — MediAsas Teras (a standard plan) and MediAsas Fleksi (a standard-plus plan). The scheme will provide medical coverage for individuals up to the age of 85. 

"The MediAsas premiums will be determined based on the latest medical claims experience and healthcare cost inflation trends, with indicative premiums expected to remain within the target monthly range of around RM60 to RM550 for individuals within the entry age of up to 70 years," the Ministry of Finance (MOF) and Ministry of Health (MOH) said in a joint statement on Monday. 

Final pricing will be confirmed before the nationwide implementation in January 2027. The pilot phase will run from end-July until October 2026.  

Six insurers and takaful operators will participate in the pilot programme, together with selected hospitals in the Klang Valley. They include AIA Bhd, Allianz Life Insurance Malaysia Bhd, Great Eastern Life Assurance (Malaysia) Bhd, Prudential BSN Takaful Bhd, Etiqa Family Takaful Bhd and Syarikat Takaful Malaysia Keluarga Bhd.

The government said the pilot programme will test "operational readiness, including systems integration, customer experience and operational processes" in a controlled environment. Feedback gathered during the pilot phase will be used to refine implementation arrangements before the nationwide rollout.

The Base MHIT initiative forms part of the government's broader Reset strategy, undertaken jointly with Bank Negara Malaysia, to address rising medical inflation and strengthen the long-term sustainability of Malaysia's healthcare system.

The strategy focuses on value based healthcare in improving patient outcomes, optimising cost-effective healthcare services and enhancing access to quality care.  

"MediAsas will provide a firm foundation to support longer term healthcare financing reforms," Finance Minister II Datuk Seri Amir Hamzah said in the statement. "Through broader eligibility criteria and distinct product features, MediAsas is designed to be affordable over time and expands access to medical protection for a wider segment of Malaysians". 

Health Minister Datuk Seri Dr Dzulkefly Ahmad added that the initiative represents "an important step towards ensuring Malaysians have access to quality and affordable healthcare". 

Dzulkefly said cost-containment measures, including the phased implementation of the Diagnosis-Related Groups (DRG) system in private hospitals, are expected to support more sustainable healthcare costs over time with stronger focus on value-based care.

As it stands, the government is also establishing an independent governance board to oversee the programme and safeguard consumers' interests after its full implementation. Further updates will be announced following the completion of the pilot programme ahead of the nationwide rollout in January 2027.

The statement also shared that the MOH has established the Malaysia Digital Health Certification Network (MDHCN), a national trust framework aimed at enabling secure interoperability between public and private healthcare providers under the "One Person, One Record" principle.

Through the framework, patients will be able to securely access and share their health information across different healthcare settings while ensuring medical records remain portable, protected and accessible.

"Private hospitals that are part of the MediAsas network will be expected to participate in MDHCN to improve the quality of care and service, while reducing duplicative diagnostic procedures," the statement read. 

The government also said it has completed a comprehensive review of licensing and registration processes for private healthcare facilities under the Private Healthcare Facilities and Services Act 1998 (Act 586).

The review identified opportunities to streamline regulatory procedures, reduce administrative burdens and improve service delivery. Subject to approvals, digitalisation as well as review of standards and regulation initiatives will be pursued to modernise licensing processes for healthcare providers.

Separately, the government is also facilitating collaboration among the Association of Private Hospitals Malaysia, insurers, takaful operators and regulators to improve the structure and presentation of private hospital bills.

"The initiative aims to improve transparency, provide greater clarity on healthcare charges and support more informed healthcare decisions by consumers," the statement said. The working group has committed to developing a common framework for the categorisation and presentation of hospital charges by August 2026, it added.