Medical schemes have hiked contributions to stay in the game as post- pandemic normalcy returns and health-care inflation surges
21 November 2024 - 12:00
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Medical schemes have announced their annual contribution increases for 2025. At the lower end of the scale, Discovery Health announced an aver- age weighted contribution increase of 9.3%, Momentum Medical Scheme 9.4% and Medshield Medical Scheme 9.6%. Sizwe Hosmed Medical Scheme announced the highest average increase at 13.82%.
The higher contribution increases announced this year need to be considered within the context of lower contribution increases during the pandemic, says Anthea Towert, certified financial planner professional and principal consult- ant of Insight Advisory Solutions.
“During the pandemic, claims were lower than normal and medical schemes built up reserves. Most medical schemes allowed their members to benefit from these reserves by announcing unusually lower contribution increases in 2021 and 2022. The downside, however, is that these low increases put those schemes in deliberate loss- making positions so that claims paid to members were higher than contributions collected from members.”
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Medical schemes have hiked contributions to stay in the game as post- pandemic normalcy returns and health-care inflation surges
Medical schemes have announced their annual contribution increases for 2025. At the lower end of the scale, Discovery Health announced an aver- age weighted contribution increase of 9.3%, Momentum Medical Scheme 9.4% and Medshield Medical Scheme 9.6%. Sizwe Hosmed Medical Scheme announced the highest average increase at 13.82%.
The higher contribution increases announced this year need to be considered within the context of lower contribution increases during the pandemic, says Anthea Towert, certified financial planner professional and principal consult- ant of Insight Advisory Solutions.
“During the pandemic, claims were lower than normal and medical schemes built up reserves. Most medical schemes allowed their members to benefit from these reserves by announcing unusually lower contribution increases in 2021 and 2022. The downside, however, is that these low increases put those schemes in deliberate loss- making positions so that claims paid to members were higher than contributions collected from members.”
Browse through the pages below (zoom in or go full screen for ease of reading):
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