South Africa’s private healthcare sector is under severe pressure, particularly with rampant inflation tracking at rates higher than CPI, creating a system that will eventually, in the not too distant future, become unsustainable.
In fact, at the end of last year, most of the country’s medical aids announced double-digit premium increases for 2017.
“Issues that are blamed for the high cost increases include; advancement in medical technology, cost of importing medical technology, administrator fees, broker fees, supplier induced demand, member over use, aging profile of medical scheme and therefore higher claims ratios, increased rate of illness in populations, legislative changes, incentives in the system.
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