Medical schemes amass R20-bn cash pile
The Council for Medical Schemes (CMS) told Parliament that the medical schemes industry reported a R20-bn surplus in 2020. According to the CMS 2020/21 report the surplus enabled schemes to defer contribution increases or levy smaller-than-usual price hikes for 2021, reported Business Day (6 October 2021).
The average contribution increase for 2021 was 2.9%, while the Treasury projects a consumer inflation of 3.9%for the year. The industry’s average solvency ratio, which measures the ability to pay claims, stood at 44.55% in 2020, up from 35.6% in 2019.
The number of medical scheme beneficiaries declined by 0.64% in 2020, down to 8.896-m by the end of
December, compared with 8.953-m the year before. Medical schemes covered just 14.9% of the
population in 2020, continuing a decline that began in 2000, when 16.5% of the population belonged to
a medical scheme.