Rising Healthcare Costs: Indonesians at Risk of Struggling to Afford Insurance
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| Isurance (Doc. Ist) |
Printable.biz.id - More Indonesians May Struggle to Afford Private Health Insurance, AAJI Warns
The Chairman of the Board of the Indonesian Life Insurance Association (AAJI), Budi Tampubolon, predicts that more Indonesians will be unable to afford private health insurance.
This is due to the high inflation in healthcare costs in Indonesia. As medical expenses continue to rise, health insurance premiums are also increasing, as insurance companies must pay larger claims each year.
"Our medical inflation is in double digits, reaching up to 15 percent in some years. If health insurance were a commodity, in the coming years, more Indonesians would be unable to afford commercial health insurance," he stated during a hearing with Commission XI of the House of Representatives (DPR) on Monday (March 17).
Budi explained that those who can no longer afford private insurance premiums will likely switch to BPJS Kesehatan, Indonesia’s national health insurance program. As a result, BPJS Kesehatan will face greater pressure as the number of claims submitted by the public increases.
The Financial Services Authority (OJK) has announced that the government is drafting new regulations regarding health insurance claims.
Finance Minister Sri Mulyani and Health Minister Budi Gunadi Sadikin are currently discussing claim standardization, which will be formalized in a circular letter (SE).
"We will outline the health insurance claim limits in the circular letter (SE)," said OJK's Executive Head of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, after the 2024 Risk and Governance Summit at InterContinental, South Jakarta, on Tuesday (November 26).
OJK hopes that these discussions will lead to concrete decisions. Ogi emphasized that setting claim limits is necessary to create a more efficient healthcare system.
With this regulation, the government aims to make it easier for the public to claim health insurance benefits. Additionally, this policy is expected to maintain the balance of Indonesia’s healthcare ecosystem, ensuring the sustainability of hospitals, the pharmaceutical industry, and the welfare of medical professionals.
