MediAsas Is Coming in January 2027: What Malaysians Need to Know

MediAsas is set to roll out nationwide in January 2027 as Malaysia’s new standardised medical and health insurance/takaful plan. But what exactly is MediAsas, who is it for, how much could it cost, and is it meant to replace your existing medical card?

If you have been hearing the name MediAsas lately, expect to hear a lot more of it in the coming months. The Malaysian Government has confirmed that MediAsas will be rolled out to the public beginning January 2027, following a pilot programme involving selected insurers, takaful operators and private hospitals in the Klang Valley.

MediAsas is intended to make basic private medical protection more accessible and sustainable, particularly for Malaysians who currently do not have medical insurance or takaful, as well as those looking for a more affordable alternative as existing medical coverage becomes more expensive.

But MediAsas is not simply a cheaper version of the medical cards already available in the market. Its structure, hospital network, deductibles and approach to controlling healthcare costs make it somewhat different.

Here is what Malaysians should understand before the nationwide launch.

What is MediAsas?

MediAsas is a standalone medical and health insurance/takaful (MHIT) plan designed to provide basic protection against significant healthcare expenses.

Unlike some medical plans bundled with investment-linked insurance, MediAsas is a standalone medical protection product and is not tied to an investment product.

Based on the current pilot design, the plan can be renewed annually and provides eligible coverage for healthcare at different stages, including treatment before hospitalisation, hospitalisation itself, treatment following discharge and certain outpatient treatments.

MediAsas forms part of the wider RESET strategy, an initiative involving the Ministry of Health (MOH), Ministry of Finance (MOF), Bank Negara Malaysia (BNM) and other stakeholders to address rising medical costs and improve the sustainability of Malaysia’s healthcare system.

In simple terms, MediAsas is an attempt to answer a difficult question:

How can Malaysia provide access to meaningful private medical protection while keeping the cost of that protection sustainable over the long term?

Why is MediAsas being introduced?

One of the biggest challenges facing medical insurance and takaful in Malaysia is the rising cost of healthcare.

As hospital and treatment costs increase, insurers and takaful operators face higher medical claims. This can ultimately contribute to higher premiums and contributions for consumers.

MediAsas therefore isn’t being introduced in isolation. It sits within a broader healthcare reform effort focused on affordability, accessibility, transparency and sustainability in Malaysia’s private healthcare system.

One notable part of this approach is the use of Diagnosis-Related Groups (DRG).

Instead of healthcare costs being driven solely by every individual test, procedure or day spent in hospital, DRG groups treatment according to diagnosis and treatment categories. The intention is to make healthcare costs more predictable while encouraging more efficient use of resources.

Budget 2027 specifically reiterated that hospital charges under MediAsas will be based on diagnosis and treatment categories as part of efforts to better control and predict costs.

Who is MediAsas for?

MediAsas is particularly intended for two groups.

The first is Malaysians who currently have no medical insurance or takaful protection for major medical expenses but can afford a basic level of private healthcare coverage.

The second is people looking for a more affordable medical protection option, including those finding that their existing medical insurance or takaful has become increasingly expensive as they grow older.

Importantly, having an existing medical card or employer medical benefits does not necessarily mean MediAsas is irrelevant to you.

The pilot FAQ states that MediAsas is designed to complement rather than automatically replace existing protection. MediAsas Fleksi, for example, may potentially be used alongside employer medical benefits.

That means the eventual question for consumers may not simply be “MediAsas or my existing medical card?”

For some people, it could be, “How does MediAsas fit into the protection I already have?”

What are MediAsas Teras and MediAsas Fleksi?

Based on the pilot version, MediAsas comes in two options: MediAsas Teras and MediAsas Fleksi. Equivalent takaful versions are also available.

MediAsas Teras is the standard option intended to provide accessible, basic private healthcare protection.

MediAsas Fleksi provides a higher level of protection but uses a larger deductible, making it potentially suitable for people who already have another layer of coverage, such as employee medical benefits.

The differences become clearer when we look at the pilot benefits.

Pilot feature

MediAsas Teras
Overall annual limit: RM100,000 for ages 0–59
Preferred Network deductible: RM500 per disability for ages 0–59
Outside Network deductible: Same deductible plus 20% co-insurance/co-takaful, capped at RM3,000 per disability, RM15,000 per year

MediAsas Fleksi

Overall annual limit: RM150,000 for ages 60+, RM300,000

Preferred Network deductible: RM1,000 for ages 60+, RM10,000 per year

Outside Network deductible: Same deductible plus 20% co-insurance/co-takaful, capped at RM3,000 per disability, RM15,000 per year

Co-insurance/co-takaful

• Applicable in certain circumstances
• Generally not applicable under the main cost-sharing structure

These figures come from the pilot design and should not yet be treated as the final January 2027 product specifications.

How much will MediAsas cost?

Bank Negara Malaysia says indicative premiums are currently within a target range of approximately RM60 to RM550 per month for individuals within the entry age of up to 70 years. Final product features and pricing are expected to be published with the nationwide launch in January 2027.

That RM60–RM550 figure therefore shouldn’t be interpreted as a quotation or the amount every person will pay.

The actual premium or takaful contribution will depend on factors including the chosen plan and applicable pricing and underwriting considerations.

There is, however, another important development following Budget 2027. The Government has announced that premiums or contributions paid for MediAsas will be eligible for income tax relief.

EPF members below age 55 will also be permitted to pay MediAsas premiums through their Akaun Sejahtera. For SMEs with fewer than 75 employees, the Government has announced a RM200 first-year premium subsidy per employee, subject to the programme’s limits.

What does MediAsas cover?

Under the current pilot design, MediAsas includes eligible inpatient benefits such as hospital accommodation in a shared room, intensive care, hospital services and supplies, surgery, anaesthetist fees, operating theatre fees, ambulance services and inpatient doctor visits.

There are also benefits surrounding hospitalisation.

For example, eligible pre-hospitalisation treatment within 30 days before admission and post-hospitalisation treatment within 90 days after discharge are included in the pilot benefit structure.

Certain outpatient benefits are also available, including outpatient cancer treatment and eligible hospital outpatient treatment for conditions including:

• dengue;
• Influenza A and B;
• bronchitis; and
• pneumonia/bronchopneumonia.

There are limits and conditions attached to these benefits, so consumers should not interpret the presence of a condition on this list as meaning every related medical expense will automatically be paid.

Can I use MediAsas at any private hospital?

Technically, treatment may be obtained outside the MediAsas Preferred Network, but where you receive treatment can significantly affect how much you pay yourself and how the claim is handled.

The Preferred Network is central to how MediAsas is designed to control healthcare costs. Under the pilot, customers using Preferred Network providers can generally access cashless admission facilities and lower out-of-pocket costs.

Treatment outside the network may require the patient to pay first and claim reimbursement later, while different deductibles or additional cost-sharing may apply. The pilot FAQ specifically states that Preferred Network treatment generally supports cashless settlement, whereas Outside Network treatment may require pay-and-claim.

The hospital network is expected to evolve, so consumers should check the latest network before seeking planned treatment.

Is MediAsas the same as a normal medical card?

Not exactly. Both can provide protection against eligible medical expenses, but MediAsas has been deliberately designed around a more standardised benefit structure, a preferred provider network, cost-sharing and healthcare cost-control mechanisms.

That doesn’t automatically make MediAsas better or worse than an existing medical card. It makes the comparison dependent on the individual. Someone without any medical coverage may look at MediAsas very differently from someone with a comprehensive medical card with a high annual limit.

Likewise, someone whose employer already covers the first RM10,000 of medical expenses may have different considerations again.

This is why consumers should compare more than premium alone. Annual limits, deductibles, exclusions, hospital access, underwriting, waiting periods, existing employer benefits and the amount you could realistically afford to pay out-of-pocket all matter.

Should I cancel my existing medical card for MediAsas?

Not based on the information available today.

MediAsas is not intended to automatically replace existing medical insurance or takaful coverage. The pilot material explicitly contemplates consumers having MediAsas alongside employer or other medical benefits.

More importantly, cancelling an existing policy can have consequences. A new application may be subject to underwriting based on your health at that point in time. A medical condition that developed after you purchased your existing coverage could therefore affect the terms available to you under a new policy.

Consumers considering replacing existing medical protection should first compare the final MediAsas terms against their current coverage and understand the implications before cancelling anything.

So, is MediAsas worth considering?

Potentially, but whether it is suitable depends on what protection you already have, your healthcare needs, your budget and how much financial risk you are comfortable carrying yourself.

MediAsas could be particularly significant for Malaysians who currently have no private medical protection or who have struggled with the increasing cost of maintaining medical insurance or takaful.

At the same time, “affordable premium” should never be the only number consumers look at. Understanding your deductible, annual limit, hospital network, exclusions and potential out-of-pocket expenses is equally important.

Last updated: 21 October 2026

This article is for general educational purposes and does not constitute financial, insurance, takaful or medical advice. MediAsas product features referenced from the pilot programme may change before the nationwide launch in January 2027.