Medical inflation cited as key factor behind rise in contributions.
CONSUMERS are set for more financial pain next year as some medical aid schemes announced hefty increases for their member contributions.
Discovery, Momentum and Bonitas recently announced their increases for member contributions for 2025, citing medical inflation, which is above the Consumer Price Index, as being a key factor.
Discovery Health Medical Scheme said in a statement that contributions would increase by 7.4% to 10.9% across its plan range in alignment with projected medical inflation for 2025.
Dr Ron Whelan CEO of Discovery Health Medical Scheme administrator, Discovery Health, said in determining contribution increases for 2025, the priority was to maintain the benefits that members enjoy.
“To maintain the benefits available, contributions must increase to match medical inflation and expected claims for healthcare by members in 2025”.
Discovery Health said across the world, medical inflation is estimated to exceed consumer price inflation (CPI) by 6.4% in 2024. Medical inflation outpaces CPI due to ageing populations and a growing number of people being in poor health.
Damian McHugh, Chief Marketing Officer, for Momentum Health Solutions said that Momentum Medical Scheme will implement a contribution adjustment of 9.4% to ensure the continued sustainability of its offerings.
“Medical inflation has increased above CPI once again, which during the Covid-19 years was suppressed below CPI. This, coupled with the increase in the utilisation of healthcare services, has resulted in increased claims costs.
The industry is not growing, and the profile of the market is ageing ,” the scheme noted.
Lee Callakoppen, Principal Officer of Bonitas Medical Fund, said the medical scheme industry had faced turbulent conditions over the past 12 months.
“The contribution increases for 2025 vary between 8.7% and 14.9% per plan with the latter impacting only 1% of members. The increases and new benefits have been submitted to the Council for Medical Schemes and are subject to their approval. The board took into consideration market trends, including international healthcare protocols, industry analysis, benchmarking reports and benefit utilisation patterns.”
Dr Cedric Sihlangu, from the South African Medical Association Trade Union (SAMATU), said it was disheartening to witness the announcement of substantial increases in membership contributions.
“These increases place a significant financial burden on consumers, making quality healthcare increasingly unaffordable. Such decisions highlight the urgent need for the implementation of a National Health Insurance (NHI) system. Through NHI, we aim to ensure equitable access to healthcare services for all citizens, regardless of their financial standing.”
Economist Dawie Roodt said the economy was not growing enough.
“On a per capita basis we are getting poorer in South Africa. It’s a problem when consumers are facing high medical contributions. However I feel the NHI is not feasible as we don’t have the funds and government needs to get the funds from an economy that is not growing enough and consumers who are already overtaxed, it doesn’t make sense.”
