The MediAsas Plan, scheduled to launch in January 2027, will provide a financial and healthcare safety net for Malaysia’s middle-income group (M40), who are currently facing medical inflation.
Health Minister Datuk Seri Dr Dzulkefly Ahmad said the scheme would shield the M40 group through transparent cost control, with no hidden or excessive charges. He set out the case in a Facebook post, NST reported.
“Currently, a total of 340,000 private insurance policies have been surrendered by policyholders due to not being able to pay private premiums, and (more) people opt to go to government facilities; hence, the ministry comes up with this financial safety net,” he said.
“No citizen should fall into poverty just because he or she wants medical treatment; therefore, this MADANI health financial protection comes forward by offering an affordable basic protection scheme,” he added.
The plan took shape during the tabling of Budget 2027 on 9 Oct. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said, according to Malay Mail, that private hospital bills must use a standard and transparent category of charges so that patients understand what they are paying and to reduce price distortions.
Anwar also said Employees Provident Fund contributors below the age of 55 can draw on their Akaun Sejahtera to pay MediAsas premiums. The government will subsidise RM200 per worker for the premiums, for a maximum of 50 employees in the first year, for small and medium-sized enterprises with fewer than 75 employees.
A pilot for the scheme has been running in the Klang Valley since the end of July, Dzulkefly said, and allows policyholders to make flexible payments through EPF Akaun Sejahtera, also known as Account 2, to ease the monthly burden.
For vulnerable groups, the Tabung Bantuan Perubatan was raised by 50 per cent to RM60 million from RM40 million, to cover high-priced medical devices such as bone implants and heart stents. The government also allocated RM80 million to the Peduli Kesihatan scheme for the B40 group, or PeKa B40.
The Finance Ministry announced earlier that MediAsas would be offered as a standalone medical insurance and takaful protection plan, covering individuals up to the age of 85. It carries two product options, namely MediAsas Teras, a standard plan, and MediAsas Flexi, a standard-plus plan.
Standalone means the plan is not bundled with an investment product, which keeps the structure simpler for buyers. The M40 label covers the middle 40 per cent of Malaysian households by income, a band that earns too much for most aid schemes yet often carries no employer medical cover.
Medical inflation has pushed private hospital bills higher in recent years, prompting thousands of policyholders to let their coverage lapse. MediAsas is positioned as a lower-cost entry point, and is to be launched nationwide at affordable prices in January 2027.
