Medical schemes will struggle to effect high increases next year
Medical scheme members may be in for lower premium increases next year if Covid-19 doesn’t suddenly throw the industry’s financials in disarray and medical aid claims patterns stay the way they’ve been up to now, reported Fin24 (23 July 2021). Momentum Health Solutions executive Damian McHugh said he is not predicting zero percent increases, but the picture we see going into 2022 is that at least the first half of 2021 is still looking good for a lower increase than what we used to experience. This year, medical schemes either didn’t increase their premiums or capped their contribution increases to be in line with inflation, as per the regulator’s directive.
McHugh said solvency levels have increased materially across the marketplace and looks healthy across the industry. That, he said, should be quite a positive thing for the industry, provided that the membership that has been lost isn’t all the young members.
The Covid-19 impact should work itself out of the healthcare system next year or later, he said. “In the main, medical schemes are in a stronger financial position and could very well have an outlook that says, maybe we don’t need as big increases going into 2022