Profmed CEO Craig Comrie has lamented that South Africans are set to feel the pinch of healthcare inflation due to rising medical scheme costs.
While citizens try to manoeuvre inflation rates, many must buckle up for healthcare inflation.
Comrie indicated that several major medical schemes will be implementing double-digit increases for the 2025 financial year.
“It’s that time of year again. Medical scheme cost increases set to stretch the budget of every consumer, leaving consumers in a state of panic. It’s not surprising at all that people cry foul, especially as we have endured a cost-of-living crisis the likes of which hasn’t been seen or felt in decades,” he said.
The prevalence of chronic illnesses, the increase in the costs of healthcare services, and an ageing economically active population are drivers of increased medical scheme costs.
Comrie said current trends that peddle extreme medical aid costs could escalate and double healthcare costs in the next seven years.
“The rising cost of medical schemes is largely driven by healthcare inflation, a trend that cannot be ignored. A monthly premium today of R1 000 will soar to R2 600 per member in the next decade,” said Comrie.
He expressed concern that rising healthcare costs may financially cripple customers.
“This steep increase in healthcare expenses is outpacing incomes and salary inflation, creating an urgent challenge that both medical schemes and their members must address,” said Comrie.
While the National Health Insurance (NHI) enables universal access to quality healthcare, Comrie noted it will financially dent the economy, further inflating healthcare costs.
“While the NHI aims to provide universal healthcare access, it will encounter the same inflationary pressures. The vigorous debate about how much it will cost at the start will pale in insignificance to the long-term costs which will escalate beyond what is anticipated due to healthcare inflation.
“Other national health systems are already buckling under this pressure where healthcare costs escalate well above the rate of revenue from taxes. The result is a curtailment of access and introduction of alternative private healthcare solutions for those able to pay for services hereby removing the burden off the fiscus to fund healthcare for all.”
He therefore called for health literacy to control the inflated healthcare costs.
He said Profmed will increase its medical aid costs to 8.4% and plans to launch a digital initiative called Amplify designed to encourage preventative health behaviours.
“By incentivising regular health checks and screenings, we’re not only helping our members take charge of their health, but they also mitigate the long-term costs associated with potential chronic diseases and serious health conditions. It’s a simple matter of good health. It is also one mechanism to reduce claims and, consequently, control the inflation of healthcare costs,” said Comrie.
The Star