Medical aid scheme contributions capped at 5% increase
Medical aid schemes may not increase monthly premiums by more than 5% for 2024, thanks to recommendations by the Council for Medical Schemes (CMS).
A report in The Citizen notes that the council announced this week the maximum limit on medical aid tariff increases, to cushion members against the harsh effects of rising inflation – an attempt to keep premiums in line with the Consumer Price Index (CPI).
CMS Regulation Executive, Mfana Maswanganyi said in a circular, ‘it is evident that most household budgets will remain constrained for the foreseeable future – leaving most consumers in precarious financial position’.
‘To cushion members of medical aid schemes against further financial distress, and the probable risk of losing their health insurance cover due to affordability constraints, medical schemes are advised to limit their cost assumptions for contribution increases for the 2024 benefit year to 5.0%, in line with CPI,’ he said.
When it comes to the regulatory framework to provide low-cost medical aid to consumers, Registrar, Kabane said the council is currently in the final stages of compiling a document of research findings and recommendations which it would send to the health minister by the end of August.
CMS chairperson, Dr Mondli Makiwane, said the recommended 5% limit is ‘not cast in stone,’ but medical aid schemes that intend to exceed the bar will be required to motivate the need for a higher increase.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
