Amid rising costs, Putrajaya mulls allowing Malaysians to tap EPF Account 2 savings for private hospital cover
KUALA LUMPUR, June 20 – Malaysians may soon be able to pull their savings from Account 2 of Employees' Provident Fund (EPF) to pay for monthly health insurance premiums, Putrajaya has suggested.
Health Minister Datuk Seri Dzulkefly Ahmad was quoted saying yesterday such a plan could benefit 16 million contributors by enabling them to access treatment at private hospitals through their EPF funds.
'This is the best way. Eventually, our people will have coverage like in Singapore. But we can't force it,' he was quoted saying by New Straits Times.
He noted the scheme would be optional and require only a small deduction from contributors' accounts.
'A small percentage can be used for insurance payment. They won't even feel it, as it doesn't come out of their pocket. It's from the EPF,' he explained.
Dzulkefly said the proposal mirrors approaches used in other countries to widen health insurance coverage and reduce out-of-pocket healthcare expenses, which currently account for 32 per cent of healthcare costs in Malaysia.
He added that contributors should have flexibility in choosing insurance plans, especially those seeking broader coverage.
The scheme would be separate from the i-Lindung programme, which focuses on protection for disability, critical illness and life coverage.
Earlier this year, Prime Minister Datuk Seri Anwar Ibrahim said his government will not tolerate unjustified increases in health insurance premiums with Bank Negara Malaysia last year unveiling interim measures to help policyholders cope with premium revisions.
This comes as Malaysia's medical cost inflation hits 15 per cent in 2024, exceeding both global and Asia Pacific averages of 10 per cent.
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