You may need just a little nudge before finally purchasing a medical card. You’ve probably done your research and spoken to a number of insurance agents. But there’s a little voice inside your head that keeps asking: Do you really need a medical card? We’re going to share the importance of having a medical card so you can make up your mind.
What is the function of a medical card?
A medical card helps pay for your hospital admissions, surgeries, and medical treatments. In return for the premiums you pay, you can claim eligible medical costs according to your policy limits. In some cases, the annual coverage you get (e.g., RM2 million) can be hundreds of times more than what you pay in premiums.
Read this article to learn more about medical cards. For useful tips to choose the best medical card, read this article.
How does a medical card work in Malaysia?
Medical cards generally work in one of two ways:
- Cashless – the insurer pays the hospital directly when you’re admitted at a panel hospital.
- Reimbursement – you pay first and then claim back from your insurer.
Cashless admission is especially helpful in emergencies, so you don’t need to settle large bills first.
If you plan to get a reimbursement policy for your medical card, you can save this article for your future reference. In that article, we simplified the steps for you to claim from your insurance.
Why is having a medical card important?
Based on the function of a medical card, it’s clear as day that a medical card is important to ensure that you receive the medical care you need, without worrying about the costs. But if you’re on the fence, our following points shall further help you see the importance of having a medical card.
1. To protect your savings
Medical costs in Malaysia continue to rise, and serious treatments can be very expensive. Without insurance, even common procedures could eat into your savings — or derail long-term financial goals like buying a home or planning for retirement.
Private hospitals vs government hospitals in Malaysia
You may also think that you don’t really need a medical card because you can just go to government hospitals. For most of us, seeking treatments at government hospitals would be the most affordable option. It’s a great option because our government hospitals are some of the world’s best! In fact, based on the 2019 International Living Annual Global Retirement Index, Malaysia ranked first in the world’s best healthcare category for its world-class healthcare services and sophisticated infrastructure. Besides, we can seek treatments at government hospitals without worrying too much about the costs as our public healthcare is heavily subsidized.
But the major downside is arguably having to be on a usually long waiting list. The question is: can you wait? Based on an online survey run by the Malay Mail in 2017, 26% out of 358 respondents cited excessive waiting hours in government clinics or hospitals as the reason for them stopping treatment.
If your medical condition needs immediate attention, how will you manage it? Imagine that there are 1,000 people also needing immediate attention, what are the odds of you getting the first attention? In some cases, your doctor may suggest you seek treatment at a private hospital. But even if you can afford to wait for your turn, you still have to fork out quite an amount of money for some procedures in a government hospital. To give you an idea of how much you can expect to pay, below are the charges by private and government hospitals.
Cost Breakdown For Medical Procedures
| Treatment type | Government hospital’s rate (RM) | Private hospital’s rate (RM) |
|---|---|---|
| Spine surgery | 15,000 – 36,000 | 40,000 – 55,000 |
| Knee replacement single bilateral | 10,000 – 35,000 | 25,000 – 45,000 |
| Hip replacement | 8,000 – 15,000 | 24,000 – 55,000 |
| Stroke treatment | 4,000 and above | 35,000 – 75,000 |
| Coronary bypass | 4,000 | 25,000 – 80,000 |
| Kidney stone | 3,000 – 10,000 (depending on case complexity) | 9,000 – 40,000 |
| Chemotherapy | 200 per treatment | 50 – 4,000 per cycle |
| Cataract | 100 – 540 | 3,500 – 6,000 |
| Angiogram/One stent angioplasty | 50 – 200 | 15,000 – 45,000 |
| Dengue | Free | 1,000 – 3,000 |
Looking at the costs above, let’s ask you this again: Will your savings still be enough for your future medical use?
Don’t let medical bills wipe out your savings. Consider getting a medical card. For just a small amount of money every month, you can save your savings and have your medical needs taken care of. Here’s a broader view of typical benefits you could find in modern medical card plans in Malaysia (actual inclusions depend on the insurer and plan):
| Benefit Category | What It Typically Covers | Why It Matters |
| Hospitalisation & Surgery | Room & board, ICU, surgeon & anaesthetist fees | Helps cover major hospital costs |
| Pre-hospitalisation | Consultations, diagnostics (e.g., blood tests) | Covers diagnostic costs before admission |
| Post-hospitalisation | Follow-ups, medication | Helps with recovery care costs after discharge |
| Daycare/Outpatient Procedures | Chemotherapy, dialysis, cataract surgery | Covers treatments without overnight stay |
| Cashless Panel Admission | Insurer pays hospital directly | Reduces upfront payment burden |
| Optional Benefits (Add-Ons) | Maternity, overseas medical, daily cash allowance | Enhances overall protection based on needs |
2. To supplement your employment medical insurance
Employer medical coverage often has lower annual limits and is tied to your employment. A personal medical card can bridge that gap, providing broader benefits and higher limits when needed.
Your employment medical insurance may not be sufficient
Usually, the annual limit of employment medical insurance is lower than that of a personal medical card. For instance, it is common for one to have RM1 million in annual limit with a personal medical card. In contrast, employment medical insurance can perhaps have at most RM300,000 an annual limit. You may not require up to RM1 million a year for your hospitalizations and treatments, but if you require more than what your employment medical insurance can cover, will you have enough to pay for the remaining costs?
You can have both employment medical insurance and a personal medical card
If you worry that your personal medical card will override your employment medical insurance, you can put your worry to rest. Neither insurance plan will override the other. In fact, they can work in tandem.
Illustration: Person A underwent knee replacement surgery. For her hospitalization, surgery and medication, she was charged RM50,000. As the annual limit of her employment medical insurance was RM40,000, she utilized her employment medical insurance first before covering the remaining RM10,000 with her personal medical card.
The illustration above shows that your personal medical card can step in to help you settle the costs when your employment medical insurance is fully utilized. Without a medical card, you will likely have to pay for your remaining medical bills out of your own pocket. You don’t want that to happen, especially if it eats up your precious savings.
Read this article to know more about why you still need a personal medical card even when you’re insured by your employer.
Conclusion
A medical card is more than just an insurance policy — it’s a financial safety net that protects your health and wealth. With rising healthcare costs and unpredictable medical needs, having a medical card ensures you can access quality medical care without worrying about how you’ll pay for it.
If you want tailored advice on choosing the right medical card for your situation, BJAK’s insurance experts can help you make an informed decision.
