Health care financing in Malaysia: A way forward

Malaysia has a two-tier health care system consisting of the public and private sectors. The Ministry of Health is the main provider of health care services in the country. The private health care sector provides services on a nonsubsidized, fee-for-service basis, and mainly serves for those who can...

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Main Authors: Ashutosh Kumar Verma, Mohamed Azmi Hassali, Fahad Saleem
Format: Article
Language:English
Published: Archives of Global Professionals 2015-01-01
Series:Archives of Pharmacy Practice
Subjects:
Online Access:http://www.archivepp.com/article.asp?issn=2045-080X;year=2015;volume=6;issue=4;spage=93;epage=96;aulast=Verma
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author Ashutosh Kumar Verma
Mohamed Azmi Hassali
Fahad Saleem
author_facet Ashutosh Kumar Verma
Mohamed Azmi Hassali
Fahad Saleem
author_sort Ashutosh Kumar Verma
collection DOAJ
description Malaysia has a two-tier health care system consisting of the public and private sectors. The Ministry of Health is the main provider of health care services in the country. The private health care sector provides services on a nonsubsidized, fee-for-service basis, and mainly serves for those who can afford to pay. For financing health care two types of health insurances are available currently: Private and employee based (aka SOCSO). SOCSO and Employee Provident Fund provide some coverage to private-sector employees. There are several challenges in pure Bismarckian model (private insurance etc.) like smaller portion of total population will be "economically active," international competition to attract firms, and maintain/increase employment will put downward pressure on labor taxes. How to sustain universal coverage in this context? In a population setting where unemployment is high informal sector, payroll taxes will not be a major source of funds. However, it is possible to create a universal health financing system by transforming the role of budget funding from directly subsidizing provision to subsidizing the purchase of services on behalf of the entire population. The integration of services between the public and private sector is very much needed, at a cost the people can afford. At present, there is no national health insurance scheme in place. Although there are many models proposed, the main question that the policymakers need to be aware of is that of the equity of access to holistic health services for all Malaysians.
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spelling doaj.art-31a14defa5124e97962e654f25100e252022-12-21T23:06:37ZengArchives of Global ProfessionalsArchives of Pharmacy Practice2045-080X2015-01-0164939610.4103/2045-080X.165136Health care financing in Malaysia: A way forwardAshutosh Kumar VermaMohamed Azmi HassaliFahad SaleemMalaysia has a two-tier health care system consisting of the public and private sectors. The Ministry of Health is the main provider of health care services in the country. The private health care sector provides services on a nonsubsidized, fee-for-service basis, and mainly serves for those who can afford to pay. For financing health care two types of health insurances are available currently: Private and employee based (aka SOCSO). SOCSO and Employee Provident Fund provide some coverage to private-sector employees. There are several challenges in pure Bismarckian model (private insurance etc.) like smaller portion of total population will be "economically active," international competition to attract firms, and maintain/increase employment will put downward pressure on labor taxes. How to sustain universal coverage in this context? In a population setting where unemployment is high informal sector, payroll taxes will not be a major source of funds. However, it is possible to create a universal health financing system by transforming the role of budget funding from directly subsidizing provision to subsidizing the purchase of services on behalf of the entire population. The integration of services between the public and private sector is very much needed, at a cost the people can afford. At present, there is no national health insurance scheme in place. Although there are many models proposed, the main question that the policymakers need to be aware of is that of the equity of access to holistic health services for all Malaysians.http://www.archivepp.com/article.asp?issn=2045-080X;year=2015;volume=6;issue=4;spage=93;epage=96;aulast=VermaHealth carehealth care financingMalaysia
spellingShingle Ashutosh Kumar Verma
Mohamed Azmi Hassali
Fahad Saleem
Health care financing in Malaysia: A way forward
Archives of Pharmacy Practice
Health care
health care financing
Malaysia
title Health care financing in Malaysia: A way forward
title_full Health care financing in Malaysia: A way forward
title_fullStr Health care financing in Malaysia: A way forward
title_full_unstemmed Health care financing in Malaysia: A way forward
title_short Health care financing in Malaysia: A way forward
title_sort health care financing in malaysia a way forward
topic Health care
health care financing
Malaysia
url http://www.archivepp.com/article.asp?issn=2045-080X;year=2015;volume=6;issue=4;spage=93;epage=96;aulast=Verma
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