Medical card premium increase letter in Malaysia: what to do before you cancel anything

Do not cancel a medical card just because the renewal premium went up. Until the end of 2026, Bank Negara Malaysia's interim measures spread repricing increases over at least three years, so most policyholders see yearly rises of under 10%, and insurers must offer an alternative plan at the same or a lower premium without new underwriting. From January 2027 you can also switch to the MediAsas base plan with the same insurer without re-underwriting or waiting periods.

A man reads a renewal letter at home while his wife comforts him

Key takeaways

  • Bank Negara's interim measures, in place until the end of 2026, spread medical repricing over at least three years so that at least 80% of policyholders see yearly increases under 10%.
  • Increases from moving into a higher age band are not covered by those measures; your letter should show the two parts separately.
  • If you do not want the repriced plan, insurers must offer an alternative medical plan at the same or a lower premium, without additional underwriting or switching cost.
  • Policyholders aged 60 and above on the minimum plan of their product get a one-year pause in repricing increases from their policy anniversary.
  • MediAsas, the base medical plan, launches in January 2027; existing policyholders can switch to it with the same insurer without re-underwriting or waiting periods, and EPF members under 55 may pay its premiums from Akaun Sejahtera.

First, read what kind of increase it is

Most medical cards in Malaysia are yearly renewable with non-guaranteed premiums. A typical disclosure sheet, such as Great Eastern's Great Medic Shield 2, says the premium may be revised on renewal with 30 days' written notice. A renewal letter usually mixes two different things:

Part of the increaseWhy it happensCovered by Bank Negara's interim measures?
Age bandYou move into an older age band, and premiums rise with ageNo, insurers manage these separately
Repricing (medical claims inflation)Hospital bills and claims for the whole product have grownYes, spread over at least three years until the end of 2026

If the letter does not split the two, ask your agent or the insurer for the breakdown. It decides which options below actually help you.

What Bank Negara's interim measures give you until the end of 2026

Bank Negara Malaysia agreed four measures with the industry after the 2024 repricing:

MeasureWhat it means for you
SpreadingRepricing increases made from 2024 to 2026 are spread over at least three years; at least 80% of policyholders are expected to see yearly rises under 10%
Pause for seniorsAged 60 and above, on the minimum plan of the product: a one-year pause in repricing increases from the policy anniversary
Alternative planIf you do not want the repriced plan, the insurer must offer a suitable alternative at the same or lower premium, without additional underwriting or switching cost
ReinstatementIf you surrendered or lapsed a medical plan in 2024 because of repricing, you can ask to reinstate it at the adjusted premium without new underwriting

"Without additional underwriting" is the valuable part: an illness you developed since you bought the policy does not get excluded when you move to the alternative plan with the same insurer.

Your options, from safest to riskiest

OptionEffect on premiumWhat you give up
Keep the plan and budget for itRises as notifiedNothing
Ask your insurer for its alternative planSame or lowerUsually a lower limit, a deductible or a lower room and board
Add or raise a deductible, or choose a lower planLowerYou pay the first part of each hospital bill yourself
Cancel and buy a new card elsewhereDependsNew waiting periods; anything diagnosed since you first bought becomes pre-existing
Let the policy lapseZeroAll cover, and a hard road back if your health changes

The order matters because of underwriting. A switch inside the same insurer under these measures keeps your health history out of the picture; a brand-new policy anywhere else does not. My guide to waiting periods explains what restarts when you change cards.

A deductible is often the cleanest saving: you agree to pay, say, the first few thousand ringgit of an admission, and the yearly premium drops. It suits people with savings or a company medical plan that can absorb small claims.

A couple talks through their options with an insurance advisor at a kopitiam table
A couple talks through their options with an insurance advisor at a kopitiam table

If your medical cover is a rider on an investment-linked plan

Many families hold their medical cover as a rider on an investment-linked policy. There, the higher insurance charges are deducted from the account value each month instead of showing up as a bigger bill. The letter may then ask you to top up or raise the premium. Three checks:

  • Look at the projected account value in the letter or on your insurer's portal: does it last to the age you need cover?
  • If the account value runs out, the whole policy can lapse, including the medical rider.
  • Ask for the cost of moving the medical cover to the insurer's alternative plan before deciding to top up.

Great Eastern policyholders can see account values and statements on e-Connect; the guide to the Great Eastern app and e-Connect shows where.

A man works out his budget on the phone with a calculator and notepad
A man works out his budget on the phone with a calculator and notepad

What changes in 2027: MediAsas and standard hospital bills

The interim measures run until the end of 2026, and Bank Negara's base plan page encourages existing policyholders to keep their policies until the base plan is available. That plan is MediAsas, launching in January 2027:

  • Switching: existing policyholders can move to it with the same insurer without re-underwriting and without waiting periods.
  • Limits: an annual limit of RM100,000 (RM150,000 from age 60), or RM300,000 on the standard-plus option with a higher deductible.
  • Age: available to buy up to age 70, with cover to age 85.

Budget 2027 added two things, as Malay Mail reported on 9 October 2026: EPF members under 55 can pay MediAsas premiums from Akaun Sejahtera, and from 2027 private hospital bills must use standard, transparent charge categories. Note the EPF option is announced for MediAsas premiums, not for every medical card.

My MediAsas guide compares it with a regular medical card. For many people the best 2027 move is to keep a fuller card if it is affordable, and use MediAsas as the fallback rather than dropping cover.

How I can help

I am a Great Eastern Life Planning Advisor in Kuala Lumpur and Selangor; this is an independent guide, not Great Eastern's website. When a renewal letter arrives, I can:

  • read the letter with you and separate the age-band part from the repricing part;
  • ask for the alternative plan and compare what changes, for my Great Eastern policyholders;
  • review a medical card from any insurer in a free policy review and tell you honestly whether to keep it, with no need to buy anything.

WhatsApp me a photo of the letter; I usually reply the same day.

Questions people ask

Why did my medical card premium go up so much?

Usually for two reasons together: you moved into an older age band, and the insurer repriced the product because hospital costs and claims rose. Ask for the two parts separately, because Bank Negara's interim measures only cover the repricing part.

Is there a cap on medical card premium increases in Malaysia?

Not a fixed cap. Until the end of 2026, Bank Negara's interim measures spread repricing over at least three years so that at least 80% of policyholders see yearly increases under 10%. Age-band increases are outside these measures.

Should I cancel my medical card and buy a new one?

Only after comparing. A new policy brings new waiting periods, and anything diagnosed since you first bought becomes a pre-existing condition. Ask your current insurer for its alternative plan first: it must be offered at the same or a lower premium without new underwriting.

Do premiums stop rising after age 60?

No. Bank Negara's measures give policyholders aged 60 and above on the minimum plan of their product a one-year pause in repricing increases from the policy anniversary. Age-band increases can still apply.

Can I switch to MediAsas without a medical check?

Yes, with the same insurer. Bank Negara says existing policyholders can switch to the base plan with the same insurer without re-underwriting and waiting periods. MediAsas launches in January 2027.

Can I use EPF to pay my medical card premium?

Budget 2027 announced that EPF members under 55 can pay MediAsas premiums from Akaun Sejahtera. It was announced for MediAsas, not for every private medical card, so check with EPF before you plan around it.

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