Due to rising healthcare expenditure, the Malaysian government has recently announced that it will implement a new National Health Insurance Scheme (NHIS). The NHIS will be managed by the National Healthcare Financing Authority and will require mandatory contributions from most citizens and eligible non-citizens. While the new scheme will mark the end of free universal healthcare in Malaysia when it goes into effect around the end of 2006, it is expected to provide better healthcare and healthcare facilities in Malaysia, and also offer financial risk management for those facing high medical fees.
The NHIS will be based on a "community-rated" model, where the cost of healthcare will be spread across the population, with the rich and healthy helping to subsidize the poor and sick. Specialized packages will be available for those citizens who desire better healthcare service with more options, such as a choice of private hospital or public healthcare facility. The Malaysian government hopes this cost-sharing model will allow all citizens access to quality healthcare and help alleviate the government´s financial burden due to rising healthcare costs.
The details of the NHIS are still being developed, including the mandatory contribution amount, contribution ceiling, type of healthcare packages that will be available, and how the hospitals will receive funds, among others.
However, since most private companies provide healthcare to their employees, some private sector employers are concerned that this new scheme could place an additional financial burden on them. According to the Malaysian Employers Federation, 98 percent of private companies provide medical treatment to executives, 57 percent provide hospitalization coverage, and 53 percent provide dental benefits. Under the NHIS, private sector employees may also be required to contribute towards the scheme.