This study investigated the effect of supplementary private health insurance (PHI) on out-of-pocket payment (OOP) inpatient medical expenditure in Malaysia. Secondary data analysis was conducted using the Malaysian National Health and Morbidity Survey 2019 dataset.
Findings showed that having PHI significantly increased OOP inpatient medical expenditure. Furthermore, other factors included age, residential location, ethnicity (citizenship), government guarantee letter coverage, government funding, and employer-sponsored health insurance exhibited significant association with OOP inpatient medical expenditure. These findings challenge the rationale for promoting PHI adoption, urging the Malaysian government to reevaluate the role of PHI in healthcare financing and reconsider subsidy policies. Strengthening regulations is essential to bolster the financial risk protection offered by PHI.
