Aon projected Malaysia’s medical cost trend at 16% for 2026, up from 15% in 2025. This measures the rising cost of medical benefits, not the price of everything you buy. It affects hospital bills and insurance premiums, so review your cover, limits and emergency savings regularly.
- BNM reported 15% medical cost inflation in 2024.
- DOSM reported 3.0% health inflation for 2025, which measures something different.
- Medical insurance premiums can rise when claims rise.
- BNM’s interim repricing measures run until the end of 2026.
Why Do You See Different Inflation Numbers?
| Measure | Latest figure | What it means |
|---|---|---|
| BNM medical cost inflation | 15% in 2024 | A measure of rising medical costs used in the insurance discussion |
| Aon medical trend rate | 16% projected for 2026 | The projected cost trend of medical benefits |
| WTW medical trend | 15.7% projected for 2026 | An insurer survey of gross medical trend |
| DOSM health inflation | 3.0% in 2025 | Price movement of health items in consumer inflation data |
The figures are not interchangeable. Consumer health inflation tracks a basket of prices. Medical trend rates reflect the wider cost of using healthcare and insurance benefits.
Why Are Medical Costs Rising?
Reports point to several drivers:
- New medical technology and medicine
- More non-communicable diseases
- Greater use of medical services
- Demand for private healthcare
- Staff shortages and rising specialty drug prices
These costs can feed into hospital bills, then into insurance claims, then into premiums.
What Could This Mean for Your Hospital Bill?
A typical appendix removal cost RM 20,700 nationally in 2024 claims. If that bill rose 15% every year for five years, it would reach about RM 41,600.
This is only an illustration, not a forecast for that procedure. It shows how a high rate can double a cost in about five years if it continues.
How Does Medical Inflation Affect Your Premium?
Insurance premiums are pooled to pay claims. When claims rise faster than premiums, insurers may reprice.
BNM said insurers should spread repricing over at least three years until the end of 2026, with at least 80% of affected policyholders expected to see annual increases below 10%. Government plans say BNM will strengthen requirements for all medical plans. Check your renewal letter for your own premium.
How Can You Protect Your Savings?
- Build emergency savings for deductibles and excluded costs.
- Review your annual limit against current hospital bills.
- Understand your deductible or co-payment before you claim.
- Ask for estimates before planned treatment.
- Consider government hospitals when suitable.
- Look after your health and go for recommended screening.
Do not cancel cover just because the premium rises. First ask what options your insurer offers. A lower-cost plan may be worth comparing.
Frequently Asked Questions
What is the medical inflation rate in Malaysia?
Aon projected 16% for 2026, while BNM reported 15% for 2024. These are different from DOSM’s 3.0% health inflation for 2025.
Why did my medical card premium go up?
Common reasons include your age band and rising claims. Your insurer’s repricing letter should explain the change.
Should I switch plans if my premium rises?
Compare first. A new plan may reduce the premium, but it can also change your benefits, exclusions and waiting periods.
What Should You Do Next?
Got a repricing letter? Send it to FINNO. for a plain-English review before you change or cancel your cover.
Related reading: Private Hospital Cost in KL: Real Bill Examples and Affordable Medical Card in Malaysia: A Gen Z Guide.
This article is general information, not personal financial advice. Benefits depend on the terms of each policy.
Sources
- Asia News Network: Aon medical trend report
- Bank Negara Malaysia: interim measures
- New Straits Times: DOSM health inflation
- Insurance Business: WTW medical trend
- SAYS: MBSB on medical costs
- Price Ranges for Common Private Healthcare Services in Malaysia
- Ministry of Finance: BNM rules on medical insurance
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.