The Board of Healthcare Funders (BHF) in South Africa has written to the Council for Medical Schemes calling for changes to help keep medical aid contribution increases down. This follows the council's recommendation that medical scheme contributions for 2027 should increase by 3.8% and allowance for how much members are expected to use healthcare services. The BHF said that the target will be difficult to achieve if the rising cost of private healthcare is not addressed.
According to the BHF, medical schemes paid out about R218 billion in healthcare benefits in 2022, rising to more than R259 billion in 2024. The organisation said the increases happened while the number of people covered by medical schemes grew only slightly, suggesting that members are using more healthcare services and pushing up costs. The BHF is now calling for changes, including collective price negotiations between medical schemes and healthcare providers.
The BHF is also calling for updates to prescribed minimum benefits and more affordable medical scheme options. BHF managing director Katlego Mothudi explained that they have written to the Registrar calling for structural reforms to lower healthcare costs and make lower medical scheme contribution increases achievable. The organisation is seeking structural engagements on this issue with the Registrar.
Health insurance is growing faster than medical aid in South Africa, but consumers could be left with significantly less cover when they need it most. The BHF expressed concerns that the current system may not be sustainable for many consumers. The organisation's proposals aim to address the rising costs of private healthcare and make medical aid more affordable.
The Council for Medical Schemes' recommendation for a 3.8% increase in medical scheme contributions for 2027 is a significant issue for consumers and the industry as a whole. The BHF's call for changes aims to mitigate the impact of rising healthcare costs on medical aid contributions. If the rising cost of private healthcare is not addressed, it may be challenging to achieve the target of lower contribution increases.
The BHF's proposals have implications for the healthcare industry and consumers. Collective price negotiations between medical schemes and healthcare providers could help reduce costs. Updates to prescribed minimum benefits and more affordable medical scheme options could also make medical aid more accessible to a wider range of consumers.
The Board of Healthcare Funders will continue to engage with the Council for Medical Schemes and the Registrar to push for structural reforms to lower healthcare costs. The organisation is committed to making lower medical scheme contribution increases achievable and ensuring that medical aid remains affordable for consumers.
Key points
- The Board of Healthcare Funders calls for changes to keep medical aid contribution increases down.
- Medical schemes paid out R218 billion in healthcare benefits in 2022, rising to R259 billion in 2024.
- The BHF proposes collective price negotiations and updates to prescribed minimum benefits.
