MEDICINE PRICE DISPLAY FACILITATES FAIR COMPARISONS FOR INSURANCE PROVIDERS

KUALA LUMPUR, May 6 (Bernama) -- The implementation of the Medicine Price Display Order at private healthcare facilities and pharmacies not only protects consumer rights but also allows insurance companies to compare the displayed medicine prices with those charged by private hospitals and clinics.

Professor of Health Economics, Policy and Management at IMU University Prof Datuk Dr Syed Mohamed Aljunid Syed Junid said this would allow insurance providers to make fairer comparisons and engage in more transparent negotiations with panel health facilities, while also fostering more affordable and competitive pricing in the market.

“This move is one of the key building blocks in transforming the country's health system, particularly in addressing rising health inflation and ensuring access to quality medicines at reasonable prices.

“The transparency of the price display makes regulation easier, as there are clinics that may mark up prices unreasonably. 

“This allows insurance companies to investigate, analyse, and take appropriate action when processing patient claims for treatment at private hospitals or clinics,” he said when appearing as a guest on the Temu Bual Radio programme aired on Bernama Radio today.

According to Dr Syed Mohamed Aljunid, the Medicine Price Display initiative was introduced to improve transparency in medicine pricing, enabling consumers to make informed and smarter decisions when purchasing medicines according to their affordability.

“Consumers can now view medicine prices before making a purchase, helping to prevent hidden costs or excessive pricing. This initiative also allows them to compare prices across healthcare providers and make informed choices.

“The move introduced by the government aims to prevent consumers from being burdened with unreasonable charges for medicines,” he said.

In response to concerns that the initiative may affect private medical practitioners or GPs, Dr Syed Mohamed Aljunid said that the effort was not intended to disrupt GP services or their operating models but rather to enhance the transparency of the existing system.

“What the government is doing is displaying medicine prices, not controlling them. Private facility  doctors can set prices they deem appropriate. The government does not set prices, allowing these parties to establish their own prices based on the cost of purchasing medicines,” he said.

--BERNAMA

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