Next Year Expect a Large Increase in Medical Aid Prices

A recommended price increase of 5.4% for medical aid members has been put forward by the Council of Medical Scheme (CMS) for 2020. 

Jill Larkan, head of Healthcare Consulting at wealth and advisory business GTC said that whilst medical aid schemes have been cautioned not to go above the proposed increase, South Africans should expect to pay more. Medical aids generally go above these guidelines by 3.4% on average. 

A good part of this increase is mainly due to the differences seen in how medical aid is used, according to CMS data, which shows usage patterns of members of different providers annually. On average, members should expect an increase of 8.8% on their premiums next year. In 2020, both companies and individuals will need to consider their plan types. 

Employers as well as individuals that do not form part of an employer group start their annual assessments in terms of the schemes and plans offered. 

In 2020, salary increase percentages are unlikely to match an 8.8% increase in medical aid premiums. Employers should then assess the best value for money options available to employees who are most likely under increasing financial pressure. 

Article Source: https://businesstech.co.za/news/finance/330595/expect-hefty-medical-aid-price-increases-next-year/