The Association of Private Hospitals of Malaysia has called for the adoption of a co-payment system for patients to be properly planned and executed, to ensure that access to important therapy is not jeopardised.
In a statement, its president Dr Kuljit Singh said that a co-payment system in healthcare had numerous benefits, including encouraging patients to be more cautious in their use of healthcare services.
He said when patients must pay a portion of their medical expenditure, they are more likely to weigh the importance of a doctor’s visit or specific treatment, which in turn could prevent the overuse of resources.
Kuljit also said that hospitals could see up to a 20% reduction in overcrowding when patients become more aware of their healthcare spending, allowing for better resource management.
The co-payment method can also help cut insurance premiums by eliminating false claims and promoting financial stability in the insurance business, he said.
Insurers can provide a greater range of policies to match clients’ various financial and healthcare demands, making healthcare coverage more affordable for individuals and families.
On the flip side, he said the co-payment mechanism may see those from low-income families put off critical care due to high out-of-pocket expenses, resulting in poorer health outcomes and higher long-term costs.
Kuljit also warned that the system could increase current health disparities, saying 30% of those in the low-income bracket avoid necessary care due to cost.
The implementation of co-payments might also increase administrative difficulties for hospitals, potentially resulting in inefficiencies and revenue losses of up to 5%, he said.
Policymakers and healthcare stakeholders must find a balance between encouraging responsible service usage and ensuring that disadvantaged populations continue to receive needed treatment.
From Sept 1, insurance firms will be required to give policyholders the option to foot a portion of their hospital bill in exchange for lower premiums on their health insurance.
Under the co-payment initiative, the minimum quantum has been set at 5% of the total claimable sum or RM500, whichever is higher. However, insurers are allowed to set a cap on the sum that the policyholder has to pay.
