Insurance

MediAsas: Complete Guide to BNM Guidelines, Eligibility, Coverage, and Online Application

MediAsas is Malaysia's standardized standalone medical insurance and takaful scheme under Bank Negara Malaysia's RESET strategy, offering affordable hospitalisation coverage up to age 85. Designed to curb medical inflation, it provides essential inpatient protection without investment-linked components.

Author Bowtie Team

Date 2026-10-05

Updated on 2026-10-05

Understanding MediAsas: BNM’s RESET Healthcare Reform Framework

MediAsas is a nationwide healthcare protection initiative jointly developed by Bank Negara Malaysia (BNM), the Ministry of Health (MOH), and the Ministry of Finance (MOF). Introduced as the cornerstone of Malaysia’s broader RESET healthcare reform strategy, it establishes a standardized, affordable baseline of medical and health insurance and takaful (MHIT) protection for Malaysians.

The RESET strategy was formulated in response to persistent double-digit medical inflation, which reached approximately 15% in 2024. Rapidly escalating private hospital charges and higher utilisation of healthcare services led to substantial premium adjustments across commercial medical policies, putting coverage at risk of becoming unsustainable for middle-income households. MediAsas addresses these systemic cost pressures through several structural reforms:

Pure Standalone Protection: Unlike prevailing investment-linked policies (ILPs) that bundle medical coverage with volatile investment funds, MediAsas is 100% standalone. Every sen paid in premiums directly funds medical coverage, eliminating the risk of unexpected policy lapses caused by poor fund performance or depletion of cash values.
Value-Based Healthcare Integration: MediAsas works alongside Diagnosis-Related Group (DRG) case-based hospital payments, replacing unchecked fee-for-service itemized billing with transparent, pre-negotiated treatment cost bands.
Cost-Efficient Panel Networks: Treatments are channelled through selected preferred hospital networks that adhere to clinical quality standards and disciplined pricing protocols.
Phased National Implementation: Following extensive stakeholder consultations, BNM initiated a controlled pilot programme in the Klang Valley running from late July to October 2026 across six participating licensed insurers and takaful operators, paving the way for full nationwide rollout in January 2027.

MediAsas Eligibility Criteria and Age Limits: Entry Up to Age 70, Coverage to 85

MediAsas establishes inclusive eligibility criteria designed to extend essential private healthcare protection to segments of the population who have previously been underserved or priced out of commercial coverage. The regulatory framework significantly broadens entry ages while guaranteeing annual renewal well into retirement.

Nationality and Residency: Open to Malaysian citizens holding a valid MyKad. While the initial pilot phase in the Klang Valley is restricted to citizens, regulatory guidelines plan for the eligibility pool to expand to permanent residents and foreign residents upon full nationwide implementation.
Entry Age Limits: Applicants can enrol from as young as 30 days old up to age 70 (age last birthday). Conventional private medical cards often cap new applicant entry at age 60 or 65, making MediAsas an accessible option for older adults seeking basic protection.
Guaranteed Renewability Up to Age 85: Once accepted, policyholders enjoy guaranteed annual renewal up to age 85 (age last birthday), provided scheduled premiums are maintained. Insurers cannot cancel or refuse renewal based on an individual’s claims history during the policy term.
Absence of Lifetime Limits: Both plan options under MediAsas do not impose a lifetime claim limit, ensuring policyholders can continue drawing on their annual protection year after year.

Pre-Existing Conditions Coverage: How MediAsas Evaluates Health Risks

MediAsas introduces a more accommodating approach to evaluating applicants with stable, well-managed pre-existing medical conditions who are typically declined under standard commercial underwriting. While traditional policies often reject applicants outright for minor chronic histories, BNM’s framework enables individuals with managed conditions to secure meaningful hospitalisation protection.

Under the underwriting guidelines, individuals living with controlled chronic illnesses, single-vessel heart disease, early-stage cancer in remission, and mild-to-moderate neurodevelopmental conditions (such as autism) may be accepted into the scheme. The risk-sharing model operates on transparent principles:

Protection for Unrelated Illnesses and Accidents: An accepted applicant with an existing condition gains full inpatient coverage for any new, unrelated medical condition or emergency. For instance, an individual with a history of early-stage cancer in remission remains protected against cardiovascular events, acute infections, or accidental injuries.
Targeted Exclusions and Risk Loadings: To keep premiums affordable for the broader risk pool, direct treatments for pre-existing conditions generally remain excluded or may be subject to actuarial risk loadings. BNM confirmed that covering pre-existing conditions in full would drive base premiums up five- to tenfold, which would contradict the fundamental objective of widespread affordability.
Seven-Year Moratorium on Non-Disclosure: Standardized health declarations must be answered truthfully. To safeguard consumers against unfair dispute practices, BNM guidelines incorporate a 7-year moratorium that limits retroactive policy contestability for non-fraudulent non-disclosures once a policy has been maintained continuously for seven years.

Key Differences and Plan Tiers of MediAsas

MediAsas is structured into two standardized plan tiers—MediAsas Teras and MediAsas Fleksi—catering to different levels of healthcare protection and cost-sharing preferences. Teras provides accessible everyday inpatient protection, while Fleksi serves as an enhanced high-deductible safety net.

MediAsas Teras provides an annual limit of RM100,000, which automatically increases to RM150,000 once the policyholder reaches age 60. Based on 2024 claims data from Insurance Services Malaysia (ISM), RM100,000 is sufficient to cover more than 99% of typical annual private inpatient treatment episodes in Malaysia. It features a manageable per-episode deductible of RM500 for individuals below age 60, and RM1,000 for those aged 60 and above.

MediAsas Fleksi offers an expanded annual limit of RM300,000, accompanied by a higher annual deductible ranging between RM10,000 and RM15,000. This tier is calibrated for individuals seeking a catastrophic safety net to complement an existing corporate medical card or personal emergency savings.

Feature	MediAsas Teras	MediAsas Fleksi	Traditional Investment-Linked Medical Card
Primary Purpose	Affordable base hospitalisation coverage	High-limit catastrophic inpatient safety net	Comprehensive medical coverage bundled with investment funds
Annual Limit	RM100,000 (< age 60) RM150,000 (age 60+)	RM300,000	RM1,000,000 to RM5,000,000+
Lifetime Limit	None	None	Commonly none
Deductible Structure	RM500 per episode (<60) RM1,000 per episode (60+)	RM10,000 to RM15,000 annual deductible	Zero deductible, or optional copayment/deductible riders
Policy Structure	Standalone (100% protection)	Standalone (100% protection)	Bundled with investment unit funds
Premium Sustainability	Pure risk pricing; no investment lapse risk	Pure risk pricing; stabilized by high deductible	Susceptible to fund depletion and steep premium increases with age
Hospital Network	Preferred cost-efficient panel hospitals (DRG billing)	Preferred cost-efficient panel hospitals (DRG billing)	Broad private hospital network (mostly fee-for-service)

MediAsas Takaful vs Conventional Options

Under BNM guidelines, MediAsas is offered in both conventional insurance and Shariah-compliant family takaful variants. Both options deliver identical medical benefits, claim limits, deductibles, and guaranteed renewability provisions, ensuring that consumer protection remains uniform across the industry.

The distinction lies in the governance framework and financial mechanism underpinning the contract:

Underlying Contract and Risk Pooling: MediAsas Takaful operates on the principles of Ta’awun (mutual cooperation) and Tabarru’ (donation). Participants contribute to a collective risk pool managed by the takaful operator acting as an agent (Wakalah), mutually indemnifying each other against medical losses. In contrast, conventional MediAsas relies on a commercial risk-transfer contract between the individual policyholder and the underwriting insurer.
Underwriting Surplus Distribution: In MediAsas Takaful, any surplus remaining in the risk pool after medical claims, statutory reserves, and management fees have been met may be shared among eligible participants and the operator according to pre-agreed ratios. Conventional insurance policies do not distribute underwriting surplus to policyholders.
Investment and Fund Governance: Premiums collected under takaful operations are invested exclusively in Shariah-compliant, non-interest-bearing (riba-free) financial instruments overseen by an independent Shariah Committee, whereas conventional funds are invested within broader statutory regulatory guidelines.
Universal Eligibility: MediAsas Takaful is open to all Malaysians regardless of religious background, offering an ethical risk-sharing alternative to the general public.

MediAsas Indicative Monthly Premium Table and Payment Channels

MediAsas is structured to keep healthcare premiums affordable and transparent by removing intermediary commissions, administrative complexity, and investment loadings. Premiums are age-banded based on pure mortality and morbidity risk.

Age Band (Age Last Birthday)	Indicative Monthly Premium (MediAsas Teras)	Indicative Monthly Premium (MediAsas Fleksi)
30 days – 18 years	RM60 – RM75	RM35 – RM50
19 – 30 years	RM65 – RM90	RM40 – RM60
31 – 45 years	RM100 – RM160	RM65 – RM110
46 – 55 years	RM180 – RM280	RM120 – RM190
56 – 65 years	RM300 – RM420	RM200 – RM310
66 – 70 years (Entry Max)	RM450 – RM550	RM320 – RM430

Note: The figures above reflect indicative baseline premium estimates compiled during BNM’s stakeholder consultations and pilot testing. Actual final premiums may vary slightly across licensed underwriting operators upon nationwide rollout.

To ensure policyholders can maintain their protection without straining monthly household cash flows, BNM and participating operators support flexible payment options:

Automated Digital Payments: Premiums can be paid monthly, quarterly, or annually through recurring credit card billing, debit card deductions, or FPX direct debit.
EPF Akaun Sejahtera (Account 2) Withdrawals: Enrollees can fund their MediAsas protection using statutory healthcare withdrawal mechanisms under EPF Akaun Sejahtera. This allows members to maintain vital inpatient coverage for themselves and eligible dependents directly from their retirement second account without out-of-pocket cash strain.

Step-by-Step Guide: How to Apply for MediAsas Online

MediAsas is designed for simple, transparent digital enrolment through participating licensed life insurers and family takaful operators approved under BNM’s framework. During the current pilot phase (concluding in late 2026), testing is underway across selected participant groups and panel hospitals in the Klang Valley, with broad digital and branch onboarding opening nationwide in January 2027.

Consumers looking to apply once the digital channels open can navigate the standard four-step enrolment procedure:

Select an Approved Plan Tier and Operator: Visit the official online portal of any BNM-licensed insurer or takaful operator participating in the MediAsas scheme. Compare MediAsas Teras and MediAsas Fleksi to determine whether you require primary hospitalisation coverage or a high-deductible safety net.
Complete the Standardized Digital Health Declaration: Fill in the simplified, uniform medical disclosure questionnaire. Provide truthful and accurate records regarding past surgeries, current prescriptions, and managed chronic conditions (such as controlled hypertension or diabetes) to ensure seamless underwriting evaluation.
Authenticate Identity via e-KYC: Upload a clear image of your Malaysian MyKad and complete the automated digital facial verification to confirm your identity and residency qualifications.
Set Up Payment and Receive Instant Documentation: Select your preferred payment frequency and channel, whether through recurring direct debit, credit card, or EPF Akaun Sejahtera health deduction. Upon underwriting approval, you will receive your electronic certificate, policy schedule, and digital medical card for immediate use across nationwide panel hospitals.

Frequently Asked Questions

What is MediAsas and how does it fit into BNM’s RESET strategy?

MediAsas is a standardized, standalone medical and health insurance and takaful product initiated by Bank Negara Malaysia (BNM), the Ministry of Health (MOH), and the Ministry of Finance (MOF). As part of the national RESET strategy, it is designed to address medical inflation by providing an unbundled, affordable private healthcare safety net that operates free from investment-linked fund volatility and excessive hospital billing.

What are the age limits and eligibility criteria for MediAsas in Malaysia?

Malaysian citizens holding a valid MyKad are eligible to apply between the ages of 30 days and 70 years old (age last birthday). Coverage features guaranteed annual renewability up to age 85, with no lifetime claim limits across both plan tiers. Eligibility is planned to expand to permanent and foreign residents following the nationwide rollout.

Can I obtain MediAsas coverage if I have a pre-existing medical condition?

Yes, MediAsas adopts more inclusive underwriting compared to traditional private medical cards. Individuals with well-managed, stable chronic illnesses—such as controlled hypertension, single-vessel heart disease, early-stage cancer in remission, or mild autism—can obtain coverage for new and unrelated medical events, although claims directly related to the pre-existing condition may carry targeted exclusions or risk loadings.

How is MediAsas different from a regular investment-linked medical card?

MediAsas is a pure standalone protection policy where 100% of premiums fund medical hospitalisation benefits. Unlike investment-linked policies (ILPs), MediAsas does not divert money into unit funds and is not vulnerable to investment volatility, rising insurance charges, or unexpected policy lapses caused by cash-value depletion.

Can I pay MediAsas premiums using my EPF savings?

Yes, policyholders can utilize the Employees Provident Fund (EPF) Akaun Sejahtera (Account 2) health withdrawal facility to pay their MediAsas premiums. This option allows individuals and families to maintain vital hospitalisation protection without dipping into daily disposable cash flow.

When will MediAsas be available nationwide and how can consumers apply?

MediAsas is undergoing a pilot programme in the Klang Valley through October 2026 and is scheduled for full nationwide rollout in January 2027. Once launched, consumers will be able to apply directly online or via official branches of all BNM-licensed life insurers and family takaful operators offering medical products in Malaysia.

This article is for reference only; the actual coverage terms are subject to the policy.

This article is for reference only and is not medical advice. Please consult a registered doctor if you have any concerns.

Author

Bowtie Team

Bowtie Life Insurance Company Limited was founded in 2018, as the first authorised virtual insurance company in Hong Kong. Within only 2 years, Bowtie has been providing a wide range of medical coverage to the Hong Kong public. We would like to continue sharing insurance and medical knowledge with people worldwide with our professional expertise and passions.

Learn more about us: https://www.bowtie.com.hk/en/about-us

The above information was provided by Bowtie Team. It is for reference only. In no event shall Bowtie be liable to you or to any other party for any loss or damage whatsoever or howsoever caused directly or indirectly in connection with your access to or use of the content thereon.