JAKARTA, June 4 — Starting next year, Indonesian policyholders will have to bear some of the cost of their hospital bills through co-payment, according to a new regulation intended to curb overclaims and curb a rise in medical costs.
Under the new rules, policyholders will have to pay at least 10 per cent of their total claim or a maximum of 300,000 rupiah (RM78.13) for outpatient care and three million rupiah (RM781.28) for inpatient care.
Indonesia's Financial Services Authority (OJK) said the regulations were a response to a significant increase in insurance claims resulting from the higher cost of health services. It did not say by how much claims had risen.
The rule was also to prevent moral hazard and overtreatment.
"If this continues, we fear the sustainability of the health insurance business could be disrupted," it said in a statement this week.
Foreign players, including Prudential, Allianz Group, and AIA Group dominate Indonesia's medical insurance industry.
— Reuters
