Understanding Medical Insurance in Malaysia
Malaysia has everything that expats love: a gorgeous capital city, a fantastic location in the heart of Asia, easy connections to other countries, and peaceful, relaxing beaches.
It is no surprise that we’ve named it as one of the best places in the world to retire. However, when it comes to healthcare, several factors need to be considered when selecting health insurance in Malaysia.
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The Malaysian Healthcare System
In many regards, the easiest way to describe Malaysia’s national health insurance system is to say that it doesn’t have one. The country, however, has both a government-funded public health sector and a thriving private sector.
The Malaysian government heavily subsidizes the cost of medical care through the public health sector. As such, patients only need to pay nominal fees for their medical appointments and tests.
The Ministry of Health governs policies and standards. It also funds the public health insurance sector, primarily by general taxation.
The government spends approximately 4.4% of its GDP on healthcare. Approximately 44.5% of costs are covered by individual patients through the nominal fees they pay at each visit.
Both the public and private health sectors generally provide high-quality care. Medical tourism is a significant contributor to Malaysia’s economy. As such, most doctors and nurses speak English.
In particular, standards in cardiology, ophthalmology, dentistry, orthopedics, gastroenterology, and plastic and general surgery are excellent. Most doctors are required to complete three years of service in the public sector to ensure a balance of resources between the public and private sectors.
Pros and Cons of Using Public Healthcare in Malaysia
Public health facilities and services in Malaysia are very affordable. A routine doctor’s appointment for a minor malady might cost $10 or even less.
Even serious procedures, such as heart operations, are less expensive in Malaysia than in the United States or neighboring Asian countries. It’s no surprise that medical tourism is so popular.
However, the shortcomings of public-sector health insurance plans include long waiting times, overcrowded facilities, and poor standards in rural areas. Furthermore, while medical costs are heavily subsidized, it’s not the same as universal healthcare.
Even at subsidized rates, health services may still be out of reach for low-income citizens. For serious illnesses that require long-term care, a quality medical insurance plan will provide peace of mind and access to the best care.
How Expats Can Qualify For Health Insurance
In short, foreigners can not apply to the local government insurance scheme. As there is no public health insurance program per se, there is nothing for expats to apply for. Expats may use public health facilities, but they won’t be eligible for the same subsidized rates that local citizens pay.
Global Health Insurance Plans for Living in Malaysia
While there is no public health insurance program to apply for, there are some options for long-term international citizens living in Malaysia. The Foreign Worker Hospitalisation and Surgical Insurance Scheme requires foreign employees in Malaysia to have medical insurance.
In Malaysia, the program is known as Skim Kemasukan Hospital dan Pembedahan Pekerja Asing or “SKHPPA”. Employers are expected to make contributions on behalf of their foreign employees and to split the program costs. This serves as insurance.
It allows foreign employees to pay fixed amounts for medical treatment at public hospitals. It also covers medical costs, such as ambulance fees, overnight hospital stays, and surgical care, but it is not as comprehensive as private global health insurance.
There is also a little-known program available to foreigners living in Malaysia called the Employee Provident Fund or “EPF”. This program is designed to encourage citizens to save for their retirement, with contributions from both employees and employers.
Withdrawals from this savings program can be made for specific reasons, including medical expenses. Foreigners are allowed to participate in the program, and it’s well worth investigating the pros and cons if you intend to reside in Malaysia long-term.
Best Health Insurance Plans for Expats in Malaysia
International citizens living in Malaysia have several excellent private international medical insurance plans available to cover medical expenses incurred at both public and private hospitals in Malaysia.
Two of the more popular insurers are Cigna Global and BCBS Global Solutions.
Cigna Global Medical Insurance is an excellent option for most, offering a flexible plan design that lets you tailor medical coverage by selecting specific modules to meet your medical care costs.
Cigna Global Insurance Plan
- Flexible plans tailored to your needs and budget
- 1.5M+ providers in 200+ countries
- 24/7 multilingual customer support
The BCBS Global Solutions Worldwide Premier plan is an excellent insurance option for U.S. citizens living in Malaysia, as it provides up to 9 months of coverage in the USA and worldwide.
BCBS Global Solutions Worldwide Premier
- Unlimited annual and lifetime coverage
- Pre-existing conditions covered with prior insurance
- For U.S. citizens abroad or foreign nationals in the U.S.
Things to Consider When Purchasing Medical Insurance
If you’re participating in either the Foreign Worker Hospitalization and Surgical Insurance Scheme or the Employee Provident Fund, your employer will take care of enrollment and paperwork.
Some expats have also had success negotiating private health insurance for themselves and their families as part of a broader relocation package.
Similar to many countries, there is a significant disparity in the quality of care between urban and rural areas. For instance, in Kuala Lumpur, there are 9.4 doctors for every 10,000 people, a respectable ratio. But in some rural areas, there are severe resource shortages.
If your work requires you to live outside cities, ensure your health insurance includes coverage for medical evacuation.
How Routine Doctor Visits Work
For the most part, a patient does not need an appointment to see a specialist, nor a referral from a GP. All that’s required is to register at your hospital of choice and wait in line to see the specialist.
In many respects, this is a significantly better system than programs that require physician referrals and take weeks to schedule an appointment. On the downside, you may have to wait hours in a busy hospital for a short, simple appointment.
In some cases, however, medical appointments don’t involve hospitals or waiting rooms at all. The Malaysian government has introduced a new teleconsultation system to provide services and coverage to patients in rural areas.
Records are shared electronically between doctors as needed. Clinic doctors in remote areas can consult with specialists in the city electronically. If you’re stationed in a remote location, be assured that progress is being made steadily for improved services.
How To Find A Family Physician
Doctors’ offices in Malaysia are typically set up in home offices or small clinics rather than in larger facilities. To get set up with a general practitioner or family physician, visit your local hospital and register with a doctor. Upon doing so, you’ll get information about their schedule and working hours.
Appointments are rare and usually limited to routine follow-up visits, such as prescription renewals. Most general medical visits for treatment are walk-in.
Pollution in Malaysia
Asthmatic and allergic expats will want to know that Malaysia suffers from high levels of pollution, particularly from smoke haze, from June to October.
If respiratory concerns are on your radar, speak with your insurance representative about recommendations to manage pollution exposure and schedule a proactive appointment with a respirologist.
Find the Best International Medical Insurance
- Compare multiple quotes from top insurers
- Get expert advice at no additional cost
- Find the right plan for your needs and budget
Joe Cronin, President of ICI, is a leading expert in international health, life, and travel insurance. An MBA and founder of multiple global businesses, he helps expatriates and travelers access trusted, comprehensive insurance solutions worldwide.
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