Medical inflation is currently sitting at between 10.5% and 12.5%, and yet the average increase in medical aid premiums from the ‘big three’ for 2020 is sitting well below this. Bonitas comes in highest with a median increase of 9.9%, while Discovery’s median increase is 9.5% and Momentum’s is 8.2%. Unfortunately this ‘tightening of the belt’ comes with reduced cover and more obstacles to overcome.

Why is medical inflation so high?

Medical inflation is defined as the observed increase in member claims from a medical aid over the previous year. Healthcare services are becoming more expensive. In addition, advances in medical treatments and technologies, while they help save lives, also come with an increased price tag. Biological cancer treatments and robotic surgeries are some examples that have revolutionised healthcare. The long and short of it is that medical inflation is appreciably higher than the increases that medical schemes have implemented for 2020. It is extremely difficult, in light of this, for medical aids to provide the same level of services as they have in the past.

What are medical aids doing to keep private healthcare affordable?

To combat the price increases, medical schemes have introduced lower cost options that have strict networks of providers that may be used. Co-payments have been increased or have been added where there previously were none. There is also significant effort being expended in reducing medical fraud.

Why is gap cover more important than ever?

Medical aids are having to adapt by making their networks stricter, imposing additional co-payments and increasing the sub-limits on certain types of cover. In the event of a medical emergency it is increasingly likely that consumers will be left with out of pocket medical expense shortfalls that they will be liable to cover. Gap cover is an economical solution to assist in covering these medical expense shortfalls.