BASE MHIT PLAN — WHAT BNM HAS PUBLISHED

A voluntary protection plan that helps pay for private healthcare services, designed to provide meaningful protection at affordable premiums (including takaful contributions) for Malaysians against costly healthcare expenses.

Complements, does not replace, public healthcare. BNM states the public system continues to provide universal access; the base MHIT plan adds private coverage options for those who can sustainably afford them.

It is not a social insurance scheme. It is voluntary, offered by insurers and takaful operators (ITOs).

Not an investment product. The base plan is standalone and will not be linked to investment products.

SOURCE — bnm.gov.my/mhit/baseplan

RM100,000 annual limit for the base plan — which BNM says covers 99% of treatment costs for common medical conditions based on recent claims trends.

RM150,000 for ages above 60 — the limit increases to allow for more frequent and costly claims at older ages.

Standard-plus option: RM300,000 annual limit for the same benefit package, with a higher deductible and lower premiums.

Source: bnm.gov.my/mhit/baseplan

Two-tier co-payment structure (per BNM's white paper, Diagram 2):

• Tier 1 (in-network hospitals): deductible RM500 per episode, rising to RM1,000 at age 61; co-share zero.
• Tier 2 (out-of-network hospitals): deductible RM500 per episode (RM1,000 at age 61); co-share 20% capped at RM3,000 per episode.

In-network hospitals must demonstrate efficient resource use aligned with clinical standards, cost transparency and service levels.

Source: BNM Base MHIT Plan White Paper (bnm.gov.my/mhit/baseplanwp)

Purchase up to age 70; protection up to age 85. Premiums reflect age, gender and health status, with limits on relative premiums charged to older lives and higher-risk individuals.

Source: bnm.gov.my/mhit/baseplan

To ease the impact of premium repricing until the base plan launches, BNM agreed interim measures with the industry:

• ITO spreads premium changes over at least three years for affected policyholders, in place until end-2026; at least 80% of policyholders are expected to see yearly adjustments of less than 10% from claims inflation.
• Policyholders aged 60 and above on the minimum plan get a one-year pause in claims-inflation premium adjustments from their policy anniversary.
• Policies surrendered or lapsed in 2024 due to repricing can be reinstated with the adjusted premium without additional underwriting.
• ITOs must offer alternative MHIT products at the same or lower premium to policyholders who don't want to continue repriced plans — no extra underwriting, no switching cost. ITOs without alternatives had until end-2025 to offer them.
• A RM60 million joint fund (Government + ITOs + private hospitals) accelerates health reforms including DRG payment and publishing common procedure costs, and helps develop the base MHIT product.

Source: bnm.gov.my/-/mhit-pr (20 Dec 2024)

BNM's FAQ: existing MHIT policyholders can switch to the base MHIT plan with the same ITO without re-underwriting or waiting periods. Further details will come from ITOs closer to the 2027 launch.

Source: bnm.gov.my/mhit/baseplan (FAQ)