CMS recommends 4,2% hike in in scheme contributions
The Council for Medical Schemes (CMS) recommends in a circular that medical schemes raise 2022 contributions by no more than 4.2% (the average inflation rate expected for next year).
“While the annual medical aid contribution increases used to be much higher than the average consumer inflation in the past, the CMS now uses CPI as a proxy measure for affordability, given the salary cuts and job losses that many households suffered,” reported Fin24 (3 August 2021).
However, the recommendation of CPI-linked increases comes as medical schemes report record surpluses in the past year. Most are sitting on record high reserves, which they could use to arrest contribution increases in 2022.”
Meanwhile, claims directly related to the pandemic could climb, as empirical evidence shows that the prevalence of “long Covid” is also increasing. Doctors, insurers and medical schemes are still studying the potential impact of “long Covid” - persistent Covid-19 symptoms and other health complications that develop among survivors.