Ensuring Sustainable and Equitable Health Financing was pillar three of the health reform pillars and strategies mentioned in the HWP . The pillar includes significant systemic and structural improvements designed to make health financing more sustainable and value-driven while improving financial risk protection and reducing out-of-pocket expenses .

The HWP was presented in Parliament on June 15 by Health Minister Dr Zaliha Mustafa . It provided several recommendations on how to gradually increase investments in health , diversify the sources of funding for the sector , pool risks , and improve spending efficiency .

One of the reform strategies to ensure the population ’ s access to affordable , comprehensive services is the development and establishment of the health benefits package .

Establishing a benefit package for the population , financed by a dedicated health fund , will allow for greater pooling of health and financial risk within the population and greater cross-subsidisation for Universal Health Coverage .

The benefit package will provide a specified set of health services and medications at affordable fees with the same level of care , regardless the provider is from the public , private or non-profit sector .

“ The benefit package will encompass a range of evidence-based services , including promotive and preventive services , from primary healthcare to hospital care , including potentially from digital health providers .

“ The scope of the benefit package will be based on objective economic and health technology assessments and will continuously evolve as Malaysia ’ s health financing system matures and in response to changing health needs ,” said the HWP .

A dedicated health fund to be established will pay for the services used by the population under the benefit package . Government funding will comprise most of the health fund ’ s budget , though future financing may come from large donors and private donations .

The fund will be managed by the notfor-profit professional Strategic Purchaser governed by clear reporting standards and robust regulatory oversight to ensure its administration doesn ’ t strain the public purse and serves the public interest .

Dr Zaliha

increased to five per cent of GDP .

This increment will also consider strategic collaboration and using resources and assets across various stakeholders .

“ Given the increasing health needs from Malaysia ’ s changing demographics , relying on a single source to support the financing of public health is neither sustainable nor equitable . A form of social compact will be proposed which calls on to share the responsibility of investing in health .

“ As part of this , options for progressive contributory schemes will be explored , deliberated and , if found suitable , presented to Parliament for bi-partisan acceptance .”

Other proposed initiatives include reviewing and revising fee structures at public sector healthcare facilities .

“ The low fees charged by public healthcare facilities is a highly valued feature of the country ’ s health system , allowing affordable access to millions of users .

“ Nevertheless , the one-size-fits-all fee structure has contributed to the immense disparity between fees charged against

the cost of provision and the less-noted gap between the prices charged versus the capacity and willingness to pay , particularly amongst higher income households .

“ To improve the sustainability of public healthcare funding , the range of fees and charges in public healthcare facilities will be reviewed to be more commensurate with different affordability levels while still maintaining the safety nets and current affordability levels for lowerincome households .”

WHO WILL MANAGE THE PROPOSED HEALTH FUND ?

The HWP also stated that increasing the effectiveness and efficiency of healthcare spending is just as important as growing investments and funding when it comes to ensuring the sustainability of health financing .

New roles and strategic practices will be introduced to ensure that increased health investments significantly impact the nation ’ s health outcomes .

“ A not-for-profit Strategic Purchaser will manage the proposed dedicated

INCREASING INVESTMENT IN HEALTH

To achieve Universal Health Coverage and protect individuals from financial risk when they fall ill , the HWP also emphasised the need for publicly managed health funding from various sources , including the government , individuals , and companies needs to be gradually