According to medical scheme administrators, medical inflation - rising 3% to 5% above general inflation – was the main reason for the high increases in medical premiums, reported Daily Maverick (16 Oct 2024).
“Bestmed, Fedhealth, and Medihelp lead the pack with weighted average increases of 12.75%, 12.4%, and 10.8%, respectively. Other top schemes, such as Bonitas (10.2%), Momentum (9.4%), and Discovery (9.3%), follow closely behind.
According to Dr Ron Whelan, CEO of Discovery Health Medical Scheme, medical inflation results from several pressures, including:
• Increases in the price of healthcare services are typically in line with CPI.
• There is a higher demand for healthcare services due to an ageing population and the increasing prevalence of chronic illnesses.
• An increase in high-cost claimants.
• Medical technology and new medical procedures.
• Medical Inflation and Chronic Disease Prevalence Medical inflation is rising faster than general inflation, mainly due to the increasing burden of lifestyle diseases.
“The economic realities of medical inflation, chronic disease management, and rising healthcare demands mean that many South Africans will feel the financial strain in 2025. Consumers are advised to review their medical schemes’ options carefully, balancing cost and coverage to manage their healthcare needs effectively.”