The party’s central committee member Dr Michael Jeyakumar, who led 19 other party members to submit a memorandum on the scheme at the finance ministry complex today, said they did not even know that the scheme would be launched today by Prime Minister Dr Mahathir Mohamad.

Prior to the launch today, concerns had been raised over the scheme, especially that there was a lack of consultation with the relevant stakeholders.

“The finance ministry did not meet the Malaysian Medical Association and other health-related non-governmental organisations (NGOs) which had raised concerns over the scheme.

“As a matter of fact, this is the third memorandum we have submitted today. There was no reply to the earlier two.

“Nevertheless, I am of the view that it is still not too late to talk to the stakeholders so that the scheme can be improved. We hope there will be discussions,” he told FMT when contacted.

Jeyakumar’s submission of the memorandum came just about an hour after the launch of the scheme concluded this morning.

It was reported that private insurance firm Great Eastern Life had contributed RM2 billion to the fund. With this amount, the scheme is expected to offer medical protection for at least five years to the target group.

Under the scheme, qualified recipients will get health protection for free for 36 critical illnesses, covering cancer, heart attack and Alzheimer’s disease. Recipients will get a one-off payment of RM8,000 if they are identified as suffering from one of the listed critical illnesses.

The scheme also gives out a daily payment of RM50 as replacement income, if the recipient has to undergo treatment at any government hospital for a maximum 14 days a year, equivalent to RM700 a year.

Some 3.7 million Malaysians, between the ages of 18 and 55, stand to benefit from this scheme.

Jeyakumar, who is former Sungai Siput MP, raised concerns that the implementation of the scheme could possibly undermine the public healthcare system, as patients and specialists who serve in public hospitals would go to private institutions instead.

This, Jeyakumar said, would end up boosting the private hospital sector, resulting in more specialists going to private hospitals.

“At present, only 10% of specialists with more than 10 years of experience are in government hospitals, while the rest are already in the private healthcare system,” he said.

Meanwhile, MMA president Dr Mohd Namazie Ibrahim said it was a good programme as an interim measure to alleviate financial difficulties of the low-income group to a certain extent.

“This is perhaps a forerunner to social health insurance. But what is a bit worrying is that RM2 billion was received as a contribution from a private insurance company.

“No private company gives that type of money without expecting something in return,” he said when contacted.

Namazie said that GE Insurance received an exemption from divesting 30% shares to local investors and that the justification given for accepting the donation from a private insurance company was that divestment benefits a few shareholders only, but the RM2 billion could be used for “hundreds of thousands of people”.

“Nevertheless, we welcome the programme as long as there is transparency and the money is used with care and reaches the really needy people,” he said.

However, Namazie said the sustainability of the scheme, after the RM2 billion was utilised, must be studied.

“MMA expects a reform of the health financing system to improve universal health coverage for all. There are indications that health indices have begun to stagnate and out of pocket spending is about 39% of total health expenditure.

“This figure is worrying and may signal impending catastrophic health care expenditure for some,” he said.

Galen Centre for Health and Social Policy chief executive officer Azrul Mohd Khalib, who was present at the launch this morning, also raised the issue of the scheme’s sustainability.

“What is also problematic was the lack of consultation prior to the launch of the scheme,” he added.