{"id":65615,"date":"2024-10-23T11:22:32","date_gmt":"2024-10-23T03:22:32","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=65615"},"modified":"2024-10-23T11:22:32","modified_gmt":"2024-10-23T03:22:32","slug":"co-payment-insurance-bnm","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/co-payment-insurance-bnm","title":{"rendered":"BNM Makes Co-Payment Insurance Mandatory; What Does It Mean?"},"content":{"rendered":"

Starting from the 1st of September, Bank Negara Malaysia (BNM) has mandated insurance companies<\/a> to offer policies with a 5% co-payment or RM500 deductible, to the point where insurers must develop such products if they don’t already exist.<\/p>\n

But what exactly is co-payment insurance? And how does any of this affect you? That\u2019s what we\u2019re going to explain in this article.<\/p>\n

<\/span>What is co-payment insurance?<\/span><\/h2>\n

First, let\u2019s answer the most important question; what is co-payment insurance?<\/p>\n

A co-payment insurance is just an insurance scheme where the insured (eg: you) and the insurance company pays the cost of the medical bill together.<\/p>\n

How does a co-payment insurance policy work<\/h4>\n

Ali recently went to the hospital for a surgery, and his surgery costs RM15,000.<\/p>\n

In a normal insurance policy, Ali\u2019s insurance company will pay his medical bills in full.<\/p>\n

But in a co-payment insurance scheme, Ali will have to pay a percentage of his medical bills, which is predetermined.<\/p>\n

If Ali\u2019s predetermined percentage to be paid is 5%, this means that Ali will have to pay 5% of RM15000, which is RM750. The rest of the medical bills will be covered by the insurance company.<\/p>\n

Are there limits to how much the policyholder has to pay for their share of co-payment medical expenses?<\/h4>\n

There is usually a limit to how much you will have to pay for your contribution under co-payment coverage as the policyholder.<\/p>\n

For example, let\u2019s say Ali underwent a medical procedure that cost RM250,000, and his co-payment insurance requires him to pay 5% of the medical bills. But the co-payment insurance scheme also includes a clause that limits his contribution to be capped at RM1000. This means that Ali will only have to pay RM1000, instead of RM12,500.<\/p>\n

<\/span>Are there circumstances where co-payment shall not apply?<\/span><\/h2>\n

According to BNM, insurers and takaful operators (ITOs) must offer consumers an option to purchase MHIT products with a co-payment feature from September 1, 2024.<\/p>\n

However, BNM further clarified<\/a> that there are additional requirements to be observed by ITOs to safeguard consumer interests.<\/p>\n

In order to promote affordability while still ensuring access to urgent medical treatment, co-payments shall not apply in the following circumstances:<\/p>\n