Bank Negara Malaysia (BNM) is introducing a new standardised health insurance product called the Base Medical and Health Insurance/Takaful (MHIT) plan, rolling out nationwide in January 2027. It is a voluntary plan designed to give Malaysians a reliable baseline of financial protection against essential healthcare costs — at a price that is more sustainable long-term than the comprehensive plans many people currently hold.
What Is the Base MHIT Plan?
MediAsas is a standardised medical insurance product offered by six participating insurers and takaful operators: AIA, Allianz Life, Great Eastern, Prudential BSN Takaful, Etiqa Family Takaful, and Syarikat Takaful Malaysia Keluarga. “Standardised” means the core structure — what it covers, how the deductible works, and how limits are set — is defined by BNM, not left to each insurer to design differently. This makes it easier to compare, easier to understand, and harder to mis-sell.
The plan exists within Malaysia’s RESET strategy, a Joint Ministerial Committee on Private Healthcare Costs initiative to address the unsustainable rise in medical claims costs. You can read the official details at bnm.gov.my/-/mhitreset.
Key features:
- Two tiers: MediAsas Teras and MediAsas Fleksi, differing mainly in deductible size and target market
- Annual limit: RM 100,000 for the MediAsas Teras (RM 150,000 for those aged 60 and above); RM 300,000 for the MediAsas Fleksi
- Value-based co-payments: Co-pay amounts are tiered based on how efficiently a hospital manages its resources — you pay less when you choose a hospital that demonstrates efficient care
- Voluntary: No one is forced onto this plan; it sits alongside existing comprehensive products in the market
- Six providers: AIA, Allianz Life, Great Eastern, Prudential BSN Takaful, Etiqa Family Takaful, and Syarikat Takaful Malaysia Keluarga — panels and pricing can differ between them, so it is worth comparing
- Premiums: indicatively RM 60 to RM 550 a month, entry age up to 70, renewable to age 85
- Pre-existing conditions excluded: one of 35 listed exclusions
MediAsas Teras vs MediAsas Fleksi: What’s the Difference?
The two tiers are designed for different needs and financial situations.
The MediAsas Teras carries a deductible of RM 500 per disability, rising to RM 1,000 from age 60. This is the amount you pay out of pocket before the insurer covers the rest of the bill. Because it resets per disability rather than per admission, a readmission for the same condition does not draw it again. For most Malaysians this is a manageable one-off cost — roughly equivalent to one or two months of the premium savings you would gain by choosing this plan over a zero-deductible product.
The MediAsas Fleksi carries a much higher deductible charged per annum — RM 10,000 in-network, RM 15,000 out-of-network. This tier is aimed at people who have the savings to absorb smaller and mid-sized medical bills on their own but want protection against truly large events — a major surgery, a serious illness requiring extended treatment, or a prolonged ICU stay. The trade-off is a significantly lower monthly premium.
The tiers differ in annual limits: the MediAsas Teras is set at RM 100,000 (RM 150,000 for policyholders over 60), while the MediAsas Fleksi carries a higher annual limit of RM 300,000.
If you are already familiar with how deductibles work in Malaysian medical insurance, the logic here is the same — you can read more on our deductible plans page. MediAsas simply standardises the concept and builds it into a product that every insurer must carry.
How Do the Co-Payments Work?
The co-payment structure in MediAsas is one of its more innovative features. Unlike a fixed co-pay that applies regardless of which hospital you visit, MediAsas uses a tiered co-payment system tied to hospital network status.
Hospitals are sorted into two tiers based on their fee levels and pricing transparency. In-network hospitals — those on the scheme’s panel — attract no percentage co-share; policyholders pay only the deductible. Out-of-network hospitals — those outside it — attract a 20% co-share on the bill above the deductible, capped at RM 3,000 per disability.
The practical effect: choosing a in-network hospital means your out-of-pocket cost is limited to the deductible alone. Choosing a out-of-network hospital adds a co-share element on top. The structure creates a financial incentive for policyholders to use hospitals with more transparent and moderate pricing.
Why Is This Plan Being Introduced Now?
The short answer: the current system is not financially sustainable. Medical claims in Malaysia are rising at around 16% per year, driven by a combination of medical inflation, overservicing, and comprehensive coverage that removes almost all financial signals for cost-conscious behaviour.
The result has been a wave of premium repricing that has made existing plans unaffordable for many Malaysians. BNM’s data indicates that approximately 340,000 Malaysians have surrendered their medical insurance since 2024. MediAsas is designed to keep those people in private coverage with a product that is affordable, honest about its trade-offs, and structurally more sustainable.
It is not a downgrade disguised as reform. It is a deliberately designed product that gives Malaysians a real choice: pay more monthly for zero out-of-pocket costs at admission, or pay less monthly and absorb a defined, predictable amount per hospitalisation.
What Should You Do Before 2027?
You do not need to wait until 2027 to think about your options. MediAsas will create genuine alternatives in the market, but your existing plan still needs attention now — particularly if you have received a repricing notice or are finding your current premium difficult to sustain.
Steps worth taking today:
- Review your current plan — understand what your annual limit, deductible (if any), and co-payment obligations are right now. See our policy review service if you need help doing this.
- Check whether a deductible plan already suits you — some insurers already offer deductible-based plans that work similarly to the Base MHIT MediAsas Teras. You may not need to wait until 2027.
- Talk to an advisor before switching — your health declaration history matters. Switching plans is not always straightforward if you have pre-existing conditions. Get advice before you move.
Frequently Asked Questions
When will MediAsas be available in Malaysia?
MediAsas rolls out nationwide in January 2027, following a Klang Valley pilot that ran from 29 July to October 2026. It is offered by six participating insurers and takaful operators: AIA, Allianz Life, Great Eastern, Prudential BSN Takaful, Etiqa Family Takaful, and Syarikat Takaful Malaysia Keluarga.
Is MediAsas mandatory? Will my current plan be cancelled?
No. MediAsas is entirely voluntary. Your existing medical insurance plan will not be automatically cancelled or replaced. You choose whether to switch, supplement, or stay with your current product.
How does the co-payment tier work in practice?
It means your co-payment at the point of claim depends on which hospital network status you choose. in-network hospitals (moderate fees, transparent pricing) have no percentage co-share — you pay only the deductible. out-of-network hospitals (premium or higher-cost) carry a 20% co-share capped at RM 3,000 per disability. The hospital network status listing will be published by BNM closer to the plan’s launch.
Will MediAsas cover all hospitals in Malaysia?
BNM has not published the final hospital panel for MediAsas as of mid-2026. The expectation is that it will cover a broad panel of private hospitals, with the co-payment tier varying by hospital network status rating. Public hospitals are covered separately under the existing public healthcare system.
Is the RM 100,000 annual limit enough?
For many standard hospitalisations — a surgery, a medical admission for an acute illness, a short ICU stay — RM 100,000 is adequate. Where it may fall short is for prolonged cancer treatment, complex cardiac procedures, or extended critical care. If your situation warrants higher coverage, MediAsas may not be your primary product, but it could serve as a cost-effective foundation alongside a top-up plan.
Have a question that wasn’t covered here? Our advisors at FINNO. offer free, no-obligation consultations — no hard sell, just honest answers about what’s right for your situation.