How To Protect Yourself Against Rising Medical Costs

Many Malaysians are worried about how high inflation might affect their lives and wellbeing. Little do they know another form of inflation has been affecting their financial lives behind the scenes for years on end. In general, medical inflation has stayed at 4-5x above the average inflation in Malaysia. Malaysia’s medical inflation was projected at 12% in 2022. 

Even as our savings earn interest and our wages grow over time, high medical inflation may leave us unequipped to deal with medical bills. Having medical insurance can help cover your medical bills, but could be inadequate if it has not kept up with rising medical costs due to medical inflation. Reviewing your medical plan at least once a year can help you keep up with medical inflation in the long run. Check out these key insurance benefits to see if you are adequately protected:

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High Annual Limit + No Lifetime Limit 

The annual limit is the maximum amount your medical insurance will cover you every year. With high medical costs, this limit might be exceeded and the burden of covering the costs will shift onto you. It’s especially true if you bought a medical insurance plan a long time ago and have not reviewed it. For example, from 2010 to 2015, the cost of an angiogram in Malaysia increased a whopping 67% from RM6,000 to RM10,000. Having a high annual limit protects you in the long term. Additionally, look for no lifetime limit benefits, which provides additional support when the annual limit refreshes to the original amount.

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Long Term Coverage

The average life expectancy in Malaysia is 75.6 years old and increasing. Short-term coverage can leave you to deal with medical bills at old age when you may not have a stable source of income or when you should be enjoying retirement. Since we are more prone to catching diseases and disabilities the older we get (WHO), getting a medical insurance plan when younger that covers your whole life financially protects you against health risks including at a later age when getting insured could be problematic if you already have health issues.

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Adaptive and Well Prepared

The modern world and its needs are changing faster than ever before. Is your insurance equipped for that? Unexpected events like COVID-19 or the spike in dengue cases in Malaysia can happen very suddenly and their impact can be felt for years. One study showed that the probability of a pandemic with a similar impact to Covid-19 is increasing. A way to ensure your adaptability and well preparedness is to have a medical insurance plan that is adaptive. Insurance plans such as Smart Health Cover offer Covid-19 coverage to give you peace of mind as you go about your daily life.

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High Room & Board Allowance

This is a factor that’s easily overlooked when considering medical costs. Although Room & Board costs may not look expensive, the daily cost of a long stay can add up significantly. A single standard room in a major private hospital in KL and Selangor can easily cost RM250 a day. A low Room & Board allowance may mean opting for a shared room in a hospital or paying the additional cost for the privacy you might prefer in your recovery. 

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Let your insurance take care of your bills

Medical inflation is not going away anytime soon so it’s important to review if you are adequately protected.
Focus on your recovery and let Smart Health Cover take care of your medical bills. It ticks all the items above when it comes to protecting yourself against rising medical cost! If you need to keep to a certain budget, you can still opt for the deductible option which has savings of up to 15% on the Cost of Insurance. Learn more here.