The Galen Centre for Health and Social Policy said Bank Negara should take responsibility to set co-payment limits, so that policyholders are not charged such high amounts that they are forced to take bank loans or fall back on their EPF savings to cover the cost.

Galen Centre CEO Azrul Khalib said there should also be an option for the central bank to revise the co-payment limits periodically.

His view is contrary to that shared by Saidah Asilah Abdul Shukor, a financial adviser licensed by BNM, who believes that policyholders are unlikely to be charged excessively.

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 premium on their health insurance.

Under the “co-payment” initiative, the minimum quantum has been set at 5% of the total sum that is claimable or RM500, whichever is higher. However, insurers are allowed to set a cap on the sum that the policyholder has to pay.

Azrul said a cap protects policyholders and takaful participants by ensuring that there is an upper limit to their risk exposure.

“This ensures that they do not end up paying an exorbitant amount in medical bills,” he told FMT. Bank Negara should not leave it to the insurers to determine the cap.

The rationale is that opting for co-payment packages will see policyholders pay less in insurance premium. However, it also means that they will be responsible for paying a portion of their medical bill.

Saidah expects insurance providers to cap the quantum that the policyholder is responsible for at a reasonable level.

“For instance, some insurers may offer a 10% co-payment but cap it at RM1,000. So if the bill is RM60,000, the policyholder pays only RM1,000 rather than RM6,000,” she told FMT.

Nonetheless, she said, those looking to sign up for health insurance coverage should check the contracts thoroughly and compare them with those offered by other insurance providers before signing on the dotted line.