MediAsas explained: Malaysia’s basic medical insurance plan from January 2027

Why MediAsas was created

Medical costs in Malaysia rose about 15% in 2024, and many insurers raised premiums sharply. Bank Negara Malaysia (BNM) stepped in with interim measures in December 2024, asking insurers to spread increases over at least three years. Even so, about 340,000 medical policies were surrendered between January 2024 and June 2025, according to BNM’s white paper on medical insurance.

MediAsas, first called the “Base MHIT plan”, is the result. It is a simple, standard plan, the same at every provider, with cost-sharing and hospital payment rules designed to keep premiums affordable over the long term.

Teras and Fleksi: the two plans

MediAsas comes in two versions, each offered as conventional insurance or as takaful. These figures are from BNM’s pilot programme. BNM says benefits may change in the final version launched in January 2027.

A deductible is the amount you pay yourself before the plan pays. A co-payment is a share of the bill you pay on top. Both help keep premiums lower.

What MediAsas covers

• Hospital stays: a shared room (two or four beds), intensive care, surgery and day surgery, and ambulance. You can upgrade to a single room, but you pay the difference.
• Before and after hospital: tests and consultations up to 30 days before admission and 90 days after, including physiotherapy, home nursing and the GP visit that referred you.
• Cancer: outpatient cancer treatment such as chemotherapy and radiotherapy.
• Some outpatient care at hospitals: dengue, influenza, bronchitis and pneumonia, up to RM3,000 a year.

It does not cover treatment overseas, and there is no no-claim bonus.

What it doesn’t cover

BNM lists 35 main exclusions. The most important are:

• Pre-existing conditions, and congenital or hereditary conditions
• Mental and nervous disorders
• Pregnancy, childbirth and fertility treatment
• Dental treatment, spectacles and eye surgery to correct vision
• Cosmetic surgery and weight management
• Implanted devices such as pacemakers and hearing aids
• Sexually transmitted infections, including HIV
• Self-harm, substance misuse and hazardous sports

There is also a 30-day waiting period for illness (accidents are covered straight away) and a 120-day waiting period for specified illnesses. Read the full list of exclusions in the policy before you buy.

Who can buy it

• Age: you can join from birth up to age 70, and renew each year up to age 85.
• Residency: the pilot was limited to Malaysian citizens. BNM says permanent residents and foreigners living in Malaysia will be able to join at the national launch.
• Health questions: MediAsas is fully underwritten. You must answer a health questionnaire honestly, and the insurer can decline you, charge more, or exclude a condition. BNM has said some well-managed conditions may be accepted.
• One plan only: you can hold only one MediAsas policy at a time. If you cancel it, you must go through underwriting again to rejoin.

If you didn’t disclose something by mistake, the insurer can’t dispute a claim on that basis after seven years, except for fraud, deliberate non-disclosure, or major illnesses such as cancer, organ failure and serious heart disease that existed before cover started.

How much will it cost?

Final premiums have not been published. The government has indicated a range of about RM60 to RM550 a month, depending on your age when you join, with the lowest premiums for younger people. Insurers will publish prices closer to the January 2027 launch.

Premiums are not guaranteed. They rise as you get older, and can be reviewed for everyone in the plan based on how the whole MediAsas pool performs, with at least 30 days’ written notice. Your premium does not go up just because you made a claim. BNM plans an independent governance board to review prices each year.

Ways to pay under Budget 2027:

• EPF members under 55 can pay premiums from Akaun Sejahtera (Account 2).
• Companies with fewer than 75 staff get RM200 off each employee’s first-year premium, for up to 50 employees. How employers claim this has not yet been announced.

Premiums may also qualify for income tax relief on medical insurance, subject to LHDN’s rules.

How hospitals are paid, and why it matters

MediAsas network hospitals are paid a set amount for each type of diagnosis and treatment, known as Diagnosis Related Groups (DRG), instead of item by item. This aims to stop costs rising unpredictably, which keeps premiums stable.

For you, the deductible and limits stay the same. BNM’s example: a hospital stay for food poisoning billed at RM12,000 might be paid at RM10,000 under DRG. Separately, Budget 2027 requires all private hospitals to use standard, transparent charge categories on bills from 2027.

Should you get MediAsas?

• You have no medical cover: Teras is designed for you. Compare prices when they are published in early 2027.
• You only have employer cover: employer plans usually end when you leave the job and may have low limits. Fleksi is designed to sit on top for large bills.
• You already have a personal plan: BNM says MediAsas is meant to complement existing cover, not replace it. Compare limits, room and board, exclusions and premiums carefully. Your current plan may cover conditions MediAsas excludes, especially if you have developed a condition since you bought it.
• You are on a low income: PeKa B40 and MySalam already give free protection to eligible Malaysians. Government hospitals remain heavily subsidised.

Find a GP before you need a hospital

A regular GP can manage most illnesses, refer you to a specialist when you need one, and give you the referral letter many insurers ask for. Our directory lists GP clinics across Kuala Lumpur, Selangor and other states, with opening hours and directions.

Browse the clinic directory

Frequently asked questions