Facebook Twitter Google Plus Vimeo Youtube Feed Feedburner

ROS LBoard 1

Administrative charges by insurance firms to be probed

 | August 11, 2017

Health Minister Dr S Subramaniam says the practice of imposing administrative charges on hospitals is unethical and can cause medical bills to soar.

dr-subramaniam-medicalPUTRAJAYA: The health ministry will work with Bank Negara Malaysia (BNM) to investigate the ongoing practice of private health insurance companies to impose administrative charges on private hospitals.

Health Minister Dr S Subramaniam said the practice was unethical and could cause medical bills in the country to soar.

“For example, a hospital bills the insurance company a total of RM1,000 for the patient’s treatment, but the insurer only pays RM900 to the hospital while the remaining RM100 is calculated as an administrative or service charge.

“What would the private hospital do then? They will hike the bill up. So, the medical treatment cost will go up,” he told a press conference here today.

He said the matter had long been in practice by almost all private health insurance companies nationwide but was only brought to his attention by several private hospital representatives recently.

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.

Subramaniam said he had directed the ministry’s secretary-general, Dr Chen Chaw Min, to work with BNM to take appropriate action and ensure that health insurance companies conducted business professionally.


Readers are required to have a valid Facebook account to comment on this story. We welcome your opinions to allow a healthy debate. We want our readers to be responsible while commenting and to consider how their views could be received by others. Please be polite and do not use swear words or crude or sexual language or defamatory words. FMT also holds the right to remove comments that violate the letter or spirit of the general commenting rules.

The views expressed in the contents are those of our users and do not necessarily reflect the views of FMT.