Latest news with #EPF
New Straits Times
4 hours ago
- Health
- New Straits Times
Private hospitals back EPF plan for insurance payments, call for safeguards
KUALA LUMPUR: The Association of Private Hospitals Malaysia (APHM) has hailed the government's timely proposal to allow Employees Provident Fund (EPF) members to use their Account 2 savings to pay for monthly health insurance premiums. Its president, Datuk Dr Kuljit Singh, said while the plan is welcomed, it must be accompanied by clear safeguards to ensure its long-term sustainability. He said the responsibility now lies with the relevant agencies to determine the most appropriate funding model, whether through EPF or other mechanisms. "APHM fully supports the development of well-designed, evidence-based and data-driven policies, including the proposed basic MHIT (Medical and Health Insurance/Takaful) product. "Key stakeholders such as Bank Negara Malaysia, the Health Ministry, and the Finance Ministry will play pivotal roles in determining the best approach moving forward. "What matters most is that the mechanism serves the people effectively and remains financially viable in the long term," he told the NST. Dr Kuljit said APHM remains committed to working with all stakeholders to address challenges in healthcare financing and the rising cost of treatment. "Our member hospitals are ready to share data, insights, and industry expertise with the government to support policies that are both sustainable and beneficial to all Malaysians," he said. The government proposed the EPF plan to ease healthcare costs, widen insurance access, and relieve pressure on public hospitals. Health Minister Datuk Seri Dr Dzulkefly Ahmad said yesterday that if the proposal is implemented, 16 million EPF contributors could use their savings to access medical care at private hospitals.
New Straits Times
4 hours ago
- Business
- New Straits Times
Safeguards critical in tapping EPF savings for private healthcare, says expert
KUALA LUMPUR: A bold plan to allow Malaysians to tap into their Employees Provident Fund (EPF) Account 2 to pay for health insurance may help ease access to private healthcare. However, an analyst cautions that without careful safeguards, it could leave retirees vulnerable later in life. The proposal, which aims to address rising healthcare costs and access concerns, is a potentially meaningful step, particularly for middle-income earners and the ageing population, who are often excluded from targeted public health aid. Universiti Putra Malaysia School of Business and Economics lecturer Associate Professor Dr Lee Chin said that while the initiative fills a gap in health protection, the long-term implications for retirement adequacy must not be overlooked. "From a social protection standpoint, enabling the use of EPF savings for health insurance could fill an important gap, especially for the ageing population and middle-income groups who fall outside public safety nets. However, contributors must be well-informed. "Account 2 was designed to support housing, education and emergencies — all of which are already pressing needs. Allowing health insurance payments from the same source adds another layer of pressure," she told the New Straits Times. Lee added that without proper caps or financial literacy support, contributors risk depleting their savings too quickly, leaving little for their retirement years. From a broader policy perspective, she said such flexibility should be paired with strong public education campaigns to help contributors make informed decisions, alongside safeguards to ensure withdrawals are responsibly managed. "At the same time, the move could have ripple effects on the health insurance sector. By enabling more people — particularly those previously uninsured — to afford private coverage, the insurance pool could grow, improving risk distribution and potentially lowering premium costs over time." However, she cautioned that a sudden spike in demand could also lead to higher premiums or moral hazard without sufficient regulatory oversight. "Insurers and regulators must be prepared to monitor cost escalation and prevent abuse," she said. As for fund sustainability, Lee said that while Account 1 remains ring-fenced for retirement, even partial erosion of Account 2 could undermine long-term financial resilience, particularly among lower to middle-income groups. She cited examples such as Singapore's MediSave and Chile's pension-linked health models, which allow similar withdrawals under strict regulatory frameworks, often supported by employer or government co-payments. "Malaysia can learn from these examples to design a scheme that is targeted, transparent and accountable." She added that the policy could serve as a much-needed bridge between financial and health protection, provided it is not treated as a short-term fix. "In short, this policy could bridge the gap between financial security and health protection —but only if it walks the line carefully. Health access should not come at the cost of growing old in hardship." On June 19, Health Minister Datuk Seri Dr Dzulkefly Ahmad said the government was considering allowing EPF members to use their Account 2 savings to pay for monthly health insurance premiums. He said that, if implemented, the initiative could enable 16 million EPF contributors to access private hospital treatment using their contributions. However, Dzulkefly later clarified that the proposed health insurance scheme — funded through EPF Account 2 — would be voluntary and not mandatory.
Barnama
5 hours ago
- Health
- Barnama
Proposed EPF Health Insurance Scheme Will Be Voluntary, Says Dzulkefly
KUALA LUMPUR, June 20 (Bernama) -- The government's proposed health insurance scheme, to be funded through Account 2 of the Employees Provident Fund (EPF), will be voluntary and not mandatory, said Health Minister Datuk Seri Dr Dzulkefly Ahmad. He said the initiative aims to offer EPF contributors the option of broader insurance coverage, as currently, 32 percent of healthcare costs are paid out-of-pocket by patients without insurance protection. "Through this approach, the government hopes to expand access to faster, higher-quality private healthcare without increasing the financial burden on the people," he said in a Facebook post today.
Free Malaysia Today
6 hours ago
- Health
- Free Malaysia Today
Just 1% of Account 2 funds will be used in voluntary insurance scheme
The government is considering allowing contributors to use their EPF Account 2 to pay for their health insurance premiums. PETALING JAYA : The proposal to allow contributors to use their EPF Account 2 to pay for their health insurance premiums would only involve 1% of the funds in the account, says health minister Dzulkefly Ahmad. Dzulkefly reiterated that the proposed scheme would be voluntary and not mandatory for all EPF members, Bernama reported. 'Through this approach, the government hopes to expand access to faster, higher-quality private healthcare without increasing the financial burden on the people. 'It doesn't come out of their pockets. Only about 1% of their EPF Account 2 would be used to pay for insurance. This is the best way,' he was quoted as saying. Yesterday, Dzulkefly said Putrajaya was considering the proposal which would benefit 16 million EPF members. He said 32% of the total healthcare costs in Malaysia were paid out-of-pocket by patients without insurance protection. Funds saved in EPF Account 2 are accessible for education, healthcare, housing, and a partial withdrawal at age 50. For health withdrawals, they are limited to treatment costs for illnesses approved by EPF, the purchase of healthcare equipment, and fertility treatments. Bank Negara Malaysia previously called on insurers and takaful operators to review their repricing strategies for more 'reasonable implementation' after reports of a 40% to 70% hike in medical insurance premiums this year. Insurers and takaful providers said the increased premiums were 'unavoidable' in light of rising claims and medical inflation.
New Straits Times
7 hours ago
- Health
- New Straits Times
Dzulkefly: EPF medical scheme will be optional, not mandatory
KUALA LUMPUR: The government's proposed health insurance scheme, to be funded through Account 2 of the Employees Provident Fund (EPF), will be voluntary and not mandatory, says Health Minister Datuk Seri Dr Dzulkefly Ahmad. He said the initiative aims to offer EPF contributors the option of broader insurance coverage, as currently, 32 per cent of healthcare costs are paid out-of-pocket by patients without insurance protection. "Through this approach, the government hopes to expand access to faster, higher-quality private healthcare without increasing the financial burden on the people," he said in a Facebook post today. Dzulkefly said that the proposal drew inspiration from countries like Singapore, which prioritise insurance access for the majority of citizens. "It doesn't come out of their pockets. Only about 1 percent of Account 2 would be used to pay for insurance. This is the best way," he said. Yesterday, Dr Dzulkefly was reported as saying that the government is considering allowing Malaysians to use their EPF Account 2 to pay monthly health insurance premiums. If implemented, it would enable 16 million EPF members to utilise their contributions to access private hospital care. –Bernama
