The Health Ministry (MOH) will work with the central bank Bank Negara Malaysia (BNM) to investigate the ongoing practice of private health insurance companies imposing administrative charges on private hospitals.
Health Ministeri Dr S. Subramaniam said that the practice was unethical and could cause medical costs in the country to soar, reported the Bernama News Agency.
“For example, a hospital bills the insurance company a total of MYR1,000 for the patient’s treatment, the insurer only pays MYR900 to the hospital while the remaining MYR100 is calculated as an administrative or service charge.
He said this practice has been longstanding among almost all private health insurance companies nationwide but was only brought to his attention by several private hospital representatives recently.
Dr Subramaniam said private hospitals had to follow the health insurance company’s requirement or risk losing patients.
If a private hospital refuses to pay the administrative charges, the insurer will remove them from the list of panel hospitals and advise their clients to seek treatment at another hospital,” he added.