Although it has become a common practice for medical schemes to adjust their rates upwards every year, there are concerns that they will increase significantly for 2020.
Medical costs in South Africa have skyrocketed while the state hospitals are in chaos and no one can dare to be admitted.
The problems of those who do not have a medical aid are far worse than those who now have to accept a sharp rise in rates.
Of the schemes, rates increase by up to 11%, which has become so high for many members of a scheme that it is unaffordable.
Younger people can afford to only take out a hospital plan as a package, but the older people get, the more they need a comprehensive package, which is where the financial bottleneck comes from.
Discovery Health Medical Scheme (DHMS) members will pay significantly more for their medical coverage in 2020.
DHMS’s weighted average premium increase of 9.5% for 2020 does not bode well for premium increases from other medical schemes. DHMS announced the price increase on Monday morning. This is more than the 9.2% with which premiums rose on average in 2019.
However, this 9.2% is just the average price increase. Depending on the plan that members are subscribed to, they will pay between 8.9% and 10.9% more for their medical expenses.
“The average increase for 2020 enables the scheme to maintain and improve its benefits. The increase in demand for existing benefits, as well as rising costs, was taken into account, ”says Dr. Nozipho Sangweni, Chief Officer of DHMS.
According to DHMS administrator, Discovery Health, the increase is lower than expected medical inflation. Discovery Health says its calculations indicate medical inflation of between 10.5% and 12.5% in 2019.
Discovery Health says apart from the adjusted prices for its premiums, it has also made significant changes to its plans.
For example, his new Discovery Primary Care plan will allow people to register a basic plan for their home worker.
Meanwhile, Discovery also announced that its Vitality service will be 8% more expensive next year.