Medical Card Premium Going Up? Malaysia's 10% Measure and MediAsas Explained

If you've received another medical card repricing letter, you may be wondering:

“Didn't Bank Negara say premium increases are limited to 10%?”

Not exactly.

Malaysia's current interim measures apply specifically to premium adjustments caused by medical claims inflation.

Affected adjustments are being spread over at least three years, with the measures remaining in place until the end of 2026.

BNM expects at least 80% of affected policyholders to experience annual adjustments from medical claims inflation of less than 10%.

But there's an important exception:

Premium increases caused by moving into a higher age band are managed separately.

So if your monthly premium has gone from RM200 to RM250 or even RM300, the total percentage increase alone isn't enough to tell you whether something has gone wrong.

The first question should be:

Why did my premium increase?

Why do medical card premiums keep rising?

A medical insurance premium isn't necessarily a fixed price for life.

Long-term pricing can be affected by factors including:

• Rising medical claims

• Higher private healthcare costs

• Changes in treatment and medical technology

• Moving into a higher age band

• Claims experience within the insurance pool

• Product repricing

BNM has identified persistent increases in overall medical claims costs as an important part of the repricing pressure seen in recent years.

This means the problem goes beyond one insurer simply deciding to charge more.

It involves the broader private healthcare ecosystem, including healthcare costs, claims and insurance sustainability.

What does BNM's “10%” measure actually mean?

This is where much of the confusion comes from.

The interim measures introduced in late 2024 require insurers and takaful operators to spread premium adjustments caused by medical claims inflation over:

At least three years.

The measure remains in place until:

The end of 2026.

BNM expects:

At least 80% of affected policyholders to experience annual premium adjustments from medical claims inflation of less than 10%.

The wording matters.

It says:

At least 80%

not 100%.

It refers specifically to:

Medical claims inflation

not every possible premium increase.

And age-band increases are managed separately.

So this shouldn't be simplified into:

“Malaysian medical cards legally cannot increase by more than 10% a year.”

That's not what the measure says.

Why did my premium increase by more than 10%?

Suppose your premium was:

RM200 per month.

A 10% increase would make it:

RM220.

If your new premium is RM250, you might immediately think the 10% measure has been breached.

But your final premium may include more than a medical-claims-inflation repricing adjustment.

BNM explicitly says increases resulting from moving into a higher age band are managed separately from this interim measure.

So when you receive a repricing notice, ask your insurer or takaful operator:

How much of this increase is due to medical claims inflation repricing, and how much is due to an age-band adjustment or another factor?

That breakdown is much more useful than looking at one headline percentage.

RM200 to RM220, RM250 or RM300 — what does it mean?

Let's make the numbers practical.

RM200 → RM220

Increase:

RM20 / 10%

That may look consistent with an adjustment around the commonly discussed 10% level.

But the percentage alone still doesn't tell you the cause.

Check the repricing notice.

RM200 → RM250

Increase:

RM50 / 25%

Don't immediately conclude that BNM's measure has been violated.

First find out whether the increase includes:

• Medical claims inflation repricing

• An age-band adjustment

• Both

• Other policy-specific factors

If the explanation isn't clear, ask for a breakdown.

RM200 → RM300

Increase:

RM100 / 50%

At this point, the issue isn't only why the premium increased.

It's also whether the policy remains affordable over the long term.

RM200 × 12 = RM2,400 a year.

RM300 × 12 = RM3,600 a year.

That's an extra:

RM1,200 per year.

But don't cancel immediately just because the number is uncomfortable.

Understand your existing coverage and alternatives first.

Seven things to check after receiving a premium increase notice

1. What's the new monthly premium?

Calculate both:

The extra amount per month

and:

The extra amount per year.

An additional RM50 a month is RM600 a year.

2. When does it take effect?

Check the effective date so the new auto-debit doesn't catch you by surprise.

3. Why is it increasing?

Ask whether the increase comes from:

• Medical claims inflation repricing

• Age band

• Both

• Another reason

4. Have my benefits changed?

A higher premium doesn't automatically mean higher benefits.

Review areas such as:

• Annual limit

• Room and board

• Deductible

• Co-insurance or co-payment

• Outpatient benefits

• Cancer and kidney treatment

• Pre- and post-hospitalisation benefits

• Exclusions

5. What alternative MHIT products are available?

Under BNM's interim measures, insurers and takaful operators are required to provide appropriate alternative MHIT products for policyholders who don't want to continue with a repriced plan.

These alternatives are to be offered at the same or lower premiums without additional underwriting or switching costs.

Ask directly:

“What alternative MHIT products are available to me under the BNM interim measures?”

6. What do I give up if I switch?

A cheaper premium isn't automatically better.

You may be changing:

• Annual limits

• Room entitlement

• Deductibles

• Co-payment

• Scope of coverage

Compare benefits side by side.

7. Don't cancel before you understand your options

Ending existing medical coverage before understanding the consequences can leave you in a difficult position later.

A better order is:

Understand → Compare → Confirm the alternative → Decide.

Is there special assistance for policyholders aged 60 and above?

Yes, in specific circumstances.

The interim measures include a one-year temporary pause in medical-claims-inflation premium adjustments for policyholders aged 60 and above who are covered under the minimum plan within the MHIT product they purchased.

However:

Age-band increases are still treated separately.

If this applies to you or a family member, confirm the actual treatment of the policy directly with the insurer or takaful operator.

What is MediAsas?

MediAsas is the name of Malaysia's new Base Medical and Health Insurance/Takaful plan.

It is intended to provide a more affordable, standardised level of medical protection.

BNM says it is particularly intended for:

• Malaysians who are currently uninsured

• People seeking a more affordable alternative after repricing

• People whose financial circumstances have changed

But MediAsas is not free healthcare.

It is also not a government medical card automatically given to every Malaysian.

It remains a:

Voluntary medical insurance/takaful protection plan.

Can I buy MediAsas now?

Not as a nationwide retail product yet.

The pilot programme began at the end of:

July 2026

and runs through:

October 2026.

The pilot involves selected participants, six insurers and takaful operators, and 10 hospitals in the Klang Valley.

BNM says most Malaysians are not affected during this pilot phase.

The planned nationwide launch is:

January 2027.

So don't interpret current headlines as:

“The new RM60 medical card is already available to everyone.”

It isn't.

Does MediAsas really cost RM60 a month?

The current figure is an:

Indicative target range of approximately RM60–RM550 per month.

That applies across individuals with entry ages of up to 70.

The word:

Indicative

is important.

It doesn't mean everyone pays RM60.

And it doesn't mean your personal premium has already been determined.

Premiums will take into account plan benefits, medical claims experience and healthcare cost inflation trends.

BNM says final product features and pricing will be published during the nationwide launch in January 2027.

So for now, the accurate interpretation is:

MediAsas is targeting a monthly premium range of roughly RM60–RM550, but your actual future price isn't known yet.

Why is the range so wide?

Medical insurance isn't priced at one identical amount for everyone.

MediAsas will also have two options:

MediAsas Teras

The standard plan.

And:

MediAsas Fleksi

The standard-plus plan.

Entry is planned for individuals up to age 70, with coverage extending up to age 85.

That's why using “RM60” alone as shorthand for MediAsas gives an incomplete picture.

What will MediAsas cover?

BNM currently says MediAsas is designed to cover different stages of healthcare, including:

• Pre-hospitalisation

• Hospitalisation

• Post-hospitalisation

• Outpatient treatments

However, the pilot is not the final version of the product.

Final benefits, terms and pricing are still subject to the nationwide launch details.

I already have a medical card. Should I switch to MediAsas?

There isn't one universal yes-or-no answer.

One of the intended roles of MediAsas is to give existing policyholders access to a more affordable base option.

BNM says existing MHIT policyholders will be able to switch to the base MHIT plan with the same insurer or takaful operator without re-underwriting and waiting periods.

More information will be communicated closer to the 2027 launch.

That's potentially important for people struggling to afford an existing plan.

But if your current medical card has:

• Higher coverage

• Higher annual limits

• Broader benefits

• A premium you can still sustain

don't assume a cheaper base plan is automatically better.

Compare:

Coverage + limits + cost-sharing + premium + long-term affordability.

What if I'm buying my first medical card?

If you currently have no medical insurance, MediAsas could become another option to compare after its final 2027 details are released.

That doesn't automatically mean everyone should simply wait.

First understand:

• Whether you already have any coverage

• Whether your employer provides medical benefits

• Whether employer coverage disappears when you leave the job

• What premium you can sustain over the long term

• Whether you need basic or broader protection

Then compare the final MediAsas benefits and pricing when they are officially available.

What about medical coverage for parents?

For older family members, don't compare plans using monthly premium alone.

Age, existing coverage, current policy status and long-term affordability become especially important.

MediAsas currently has an entry age of up to 70 and coverage up to age 85.

But don't assume a parent will qualify for a particular premium simply because the indicative range starts at RM60.

Wait for the final product terms.

Will MediAsas replace Malaysia's public healthcare system?

No.

BNM explicitly says the base MHIT plan does not replace the public healthcare system.

Malaysia's public healthcare system will continue providing universal healthcare access to Malaysians.

MediAsas is intended as a basic insurance/takaful option within private healthcare financing.

They're not the same thing.

JomGuide quick answer

If your medical card premium has increased:

Don't ask only whether the increase is above 10%.

Ask:

Why did it increase?

BNM's current interim measures mean:

• Medical-claims-inflation repricing is spread over at least three years

• The measures remain until the end of 2026

• At least 80% of affected policyholders are expected to see annual adjustments from this factor below 10%

• Age-band increases are handled separately

If affordability is becoming a problem:

Ask your insurer or takaful operator about alternative MHIT options before cancelling.

For MediAsas:

Current status: Pilot

Pilot period: End-July to October 2026

Planned nationwide launch: January 2027

Indicative monthly premium range: RM60–RM550

Entry age: Up to 70

Coverage: Up to age 85

But:

Final pricing and product features are not yet fully confirmed.

The useful comparison in 2027 won't simply be:

“Which one is cheaper?”

It will be:

Existing medical card vs MediAsas — coverage, cost-sharing and long-term affordability.

FAQ

Did BNM limit all medical card premium increases to 10% a year?

No. The interim measure applies specifically to repricing caused by medical claims inflation, with at least 80% of affected policyholders expected to experience annual adjustments from this factor below 10%. Age-band increases are managed separately.

Why did my medical card premium increase by more than 10%?

The total increase may include an age-band adjustment or other factors. Ask your insurer or takaful operator for the reason and breakdown.

Should I cancel my medical card after a large premium increase?

Don't make the decision based only on the increase. First understand your existing coverage and ask about available alternative MHIT products.

What is MediAsas?

MediAsas is Malaysia's new base medical and health insurance/takaful plan, designed to provide a more affordable and standardised level of medical protection.

How much will MediAsas cost?

The current indicative target range is approximately RM60–RM550 per month. Final pricing will be confirmed at the nationwide launch.

When will MediAsas launch?

The nationwide rollout is currently planned for January 2027. The pilot runs from the end of July to October 2026.

Can existing medical card holders switch to MediAsas?

BNM says existing policyholders will be able to switch to the base MHIT plan with the same insurer or takaful operator without re-underwriting and waiting periods. Further details are expected closer to launch.

Will MediAsas replace public healthcare?

No. The base MHIT plan is not intended to replace Malaysia's public healthcare system.