{"id":51547,"date":"2022-03-03T10:48:05","date_gmt":"2022-03-03T02:48:05","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=51547"},"modified":"2022-03-15T13:53:27","modified_gmt":"2022-03-15T05:53:27","slug":"rising-medical-costs","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/rising-medical-costs","title":{"rendered":"Medical Costs Are On The Rise: What Does This Mean For You?"},"content":{"rendered":"

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You head to the cashier to pay for your mee goreng<\/em>. The bill comes up to\u2026wait, RM7? You could have sworn that this was RM6 a few months ago!<\/p>\n

If this sounds familiar, then you\u2019ve experienced one of the most common financial occurrences: inflation. Thanks to inflation, prices are constantly rising year by year. Unfortunately, it doesn\u2019t just affect everyday costs, but big ticket ones like medical expenses.<\/p>\n

In fact, medical inflation is often higher than the hike in prices of other goods and services – and medical care isn\u2019t cheap to start with. A lab test can cost up to RM1,000<\/a> in a government hospital, or around RM6,000<\/a> for a diagnostic test like an angiogram at a private hospital. Surgical procedures at private hospitals can cost even more – for example, around RM30,000 for an angioplasty<\/a>.<\/p>\n

So how and why are these costs rising, and what does it mean for you? Here\u2019s what you need to know.<\/p>\n

<\/span>How much are medical costs rising?<\/span><\/h2>\n

According to global insurance risk services firm Aon\u2019s 2022 Global Medical Trend Rates Report<\/a>, Malaysia\u2019s estimated medical trend rate (i.e. the change in the cost of health care) this year is 12%. In contrast, the annual general inflation rate<\/a> – that is, the increase in prices of other goods and services – is only estimated to be at 2% this year.<\/p>\n

But why are medical costs rising so much? According to Aon’s report, factors that affect medical costs include increased use of healthcare services due to aging, growing health risk factors and higher costs due to tech advancements.<\/p>\n

<\/span>What does this mean for you?<\/span><\/h2>\n

Aside from the obvious consequence of having to pay more for medical costs, it also means that you may need to seek or review your medical coverage, as well as consider other ways to manage these costs.<\/p>\n

1. Medical coverage can provide a financial safety net<\/h3>\n

An insurance or takaful policy can help you cover your medical costs. Here\u2019s how it works: you pay a small amount every month (also known as \u2018premiums\/contributions\u2019). In exchange, the policy provider will pay for your medical expenses if you get hospitalised.<\/p>\n

There are different types of plans available in the market. For example, hospitalisation and surgical insurance plans can cover your hospital room and board, lab fees, use of special facilities, nursing care and certain medicines. Basically, it covers the cost of necessary medical treatments you need when you\u2019re hospitalised.<\/p>\n

This can be incredibly helpful to cover medical costs, especially when they\u2019re constantly rising. With adequate insurance or takaful coverage, you can rest easy that your medical costs will be covered, while focusing on recovery.<\/p>\n

If you already have a medical coverage policy, it could be a good time to review your coverage to see if it has kept up with rising medical costs.<\/p>\n

2. Keep up with rising costs with medical plan revision<\/h3>\n

As medical expenses are constantly rising, your insurance or takaful coverage may periodically review its premium\/contribution or insurance charges. This is referred to as medical plan revision.<\/p>\n

\"Prudential<\/a><\/p>\n

3. Prioritise healthy habits<\/h3>\n

Besides making sure you have adequate medical coverage, one of the ways to help minimise medical expenses<\/a> is by living a healthy lifestyle. Research suggests that healthy lifestyle habits such as regular exercise and taking early steps to manage any risk factors can have a measurable positive impact on our health which will help reduce medical expenses in the long run<\/p>\n

Research also shows that too much alcohol and salt intake combined with a lack of exercise can increase your risk of getting noncommunicable diseases<\/a> like heart attacks, cancer and diabetes which will require long term medical care, leading to higher medical expenses.<\/p>\n

4. Be a smart consumer<\/h3>\n

As a consumer, there are also a few things you could do to keep medical costs under control:<\/p>\n