Decoding BNM’s New “MediAsas” Medical Framework
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Malaysia’s medical insurance landscape is getting a new baseline product, and it comes with a name most people are still learning to pronounce.
MediAsas, Bank Negara Malaysia’s (BNM) government-designed medical and health insurance/takaful (MHIT) plan, entered its pilot phase in the Klang Valley on 29 July 2026, with a nationwide rollout targeted for January 2027. If you’ve seen headlines about a “RM65 medical card,” here’s what the framework actually covers, and what it doesn’t.
What is MediAsas?
MediAsas is a standalone medical insurance and takaful plan that isn’t bundled with any investment product, covering pre-hospitalisation, hospitalisation, post-hospitalisation, and select outpatient treatments up to age 85. It comes in two variants: MediAsas Teras, the standard plan, and MediAsas Fleksi, an enhanced option with a higher deductible for broader coverage. The initiative sits under the RESET framework, a national strategy led by the Joint Ministerial Committee on Private Healthcare Costs to address rising private healthcare costs and medical inflation.
This isn’t a government-run social insurance scheme. Premiums are paid entirely by policyholders, and claims are settled by participating insurers and takaful operators, without any government funding involved. Malaysians can, however, use their EPF Account Sejahtera savings to pay premiums.
Why did BNM introduce it?
Medical inflation in Malaysia reportedly rose by around 15% in 2024 alone, pushing many middle-income earners out of conventional medical insurance. MediAsas was built as a more affordable entry point for people with no coverage, as well as those whose existing plans have become too costly to renew as they age. BNM expects the product to serve as a benchmark for other medical insurance and takaful products, and potentially influence how insurers price their wider offerings.
How much does it cost, and what does it cover?
Premiums are expected to range from roughly RM60 to RM550 a month, with enrolment open to those up to age 70 and coverage running until age 85. The two variants differ mainly in annual limits and cost-sharing:
- MediAsas Teras: annual limit of RM100,000, rising to RM150,000 at age 60, with a RM500 deductible per disability (RM1,000 for 60+) at in-network hospitals.
- MediAsas Fleksi: higher annual limit of RM300,000, with a steeper RM10,000 (in-network) or RM15,000 (out-of-network) yearly deductible.
There’s no lifetime cap under either plan. A cost-control feature worth noting is Diagnosis-Related Group (DRG) based payment, where hospitals are paid a fixed amount per treatment category rather than billing separately for every test and procedure.
What isn’t covered?
This is where the framework has drawn the most scrutiny. BNM’s official pilot FAQ, published 29 July 2026, lists 35 major exclusions, including:
- Pre-existing conditions
- Congenital and hereditary conditions
- Mental or nervous disorders
- Pregnancy and related complications
- Dental treatment
- Cosmetic and plastic surgery
- Treatments specifically for weight management
- Overseas medical treatment
Because MediAsas is fully underwritten, applicants must disclose health history through a questionnaire, and those with pre-existing conditions may face further medical assessments. There’s also a seven-year moratorium period, after which insurers generally can’t reject a claim over non-disclosure, except for fraud or a defined list of serious conditions (like cancer or major organ failure) that existed before, or surfaced within 30 days of, enrolment.
Who can apply, and when?
During the pilot, MediAsas is limited to Malaysian citizens aged 16–70 with a valid MyKad, applying through one of six insurers and takaful operators: AIA, Allianz Life, Etiqa Family Takaful, Great Eastern Life, Prudential BSN Takaful, and Syarikat Takaful Malaysia Keluarga. Permanent residents and foreign residents become eligible at the January 2027 national launch. BNM has also flagged plans for an independent governance board to keep reviewing MediAsas’s affordability and features over time.
Note that this is explicitly a pilot version. BNM’s FAQ states that terms may still be revised before the final industry-wide launch.
Your Move
MediAsas may be a useful starting point if you have no medical coverage, but it isn’t a replacement for comprehensive protection, especially given its exclusions and comparatively modest annual limits.
- Check what you’re already covered for. Compare any existing medical card or employer benefit scheme against MediAsas before assuming it’s an upgrade.
- Run the numbers on your budget. Use iMoney’s personal loan calculator if you’re weighing premiums against other financial commitments.
- Explore your fuller options. Try iMoney’s pre-screening tool to see what else might suit your situation before committing to a new medical plan.
