We have just finished the season where the various medical aids announced their premium and plan amendments for 2020.
Medical inflation has traditionally been CPI plus 4%; however, the current average premium increases are about CPI + 6% (50% more)- so what is going on?
The increases for the 3 largest open medical schemes are:
There are also instances where the benefits offered by some of the plans have been reduced making the real increase even higher.
To reinforce the point, members on Discovery’s premier plan, Executive, who were paying a monthly premium of R5 950 in 2018 will now be paying R7 257 in 2020 – a 22% increase.
A major contributor to these increases is the average age of members. Over the past 10 years the average age of some schemes has increased by as much as 10 years or more meaning that the capacity to subsidise rates across all members has been severely impaired.
This is evidenced by Momentum being the only medical aid being able to keep its average age almost constant over the past 10 years who had the lowest increases in the industry.
Millennials, who are becoming an ever-increasing proportion of the working population, are not subscribing to medical aid. At the current rates who can blame them. And they maintain that the traditional schemes no longer provide for their particular needs.
This is indeed a worrying development and one that does not bode well for future increases.
So, what are your options? You don’t just merely have to accept that you will be paying more (for possibly less). Work out what your medical costs have been over the past year and then review your current plan to ensure that you are not paying for unused or unnecessary benefits.
If you belong to a rewards programme and you are not on one of the top levels, you are probably subsidising these other members. Take the time to review alternative plans and schemes as this exercise can literally save you thousands of Rands per year.
The tables below detail the 2019 and 2020 premiums as well as the increase for a primary member on Discovery, Bonitas and Momentum.
|Executive Plan||R6 541||R7 257||10.95%|
|Classic Comprehensive||R5 368||R5 954||10.92%|
|Classic Delta Comprehensive||R4 834||R5 362||10.92%|
|Essential Comprehensive||R4 509||R5 003||10.96%|
|Essential Delta Comprehensive||R4 062||R4 507||10.96%|
|Classic Smart Comprehensive||–||R4 327||–|
|Classic Priority||R3 501||R3 814||8.94%|
|Essential Priority||R3 010||R3 278||8.9%|
|Classic Saver||R3 021||R3 290||8.9%|
|Classic Delta Saver||R2 412||R2 628||8.96%|
|Essential Saver||R2 400||R2 615||8.96%|
|Essential Delta Saver||R1 915||R2 085||8.88%|
|Coastal Saver||R2 373||R2 608||9.9%|
|Classic Smart||R1 794||R1 954||8.92%|
|Essential Smart||R1 285||R1 400||8.95%|
|Classic Core||R2 248||R2 449||8.94%|
|Classic Delta Core||R1 799||R1 960||8.95%|
|Essential Core||R1 931||R2 104||8.96%|
|Essential Delta Core||R1 543||R1 681||8.94%|
|Coastal Core||R1 770||R1 946||9.94%|
|KeyCare Plus R0 – R8 550||R1 088||R1 207||10.94%|
|KeyCare Plus R8 551 – R13 800||R1 523||R1 659||8.93%|
|KeyCare Plus R13 801+||R2 249||R2 450||8.94%|
|KeyCare Core R0 – R8 550||R871||R949||8.96%|
|KeyCare Core R8 551 – R13 800||R1 086||R1 183||8.93%|
|KeyCare Core R13 801+||R1 661||R1 809||8.91%|
|KeyCare Start R0 – R9 150||R839||R914||8.94%|
|KeyCare Start R9 151 – R13 800||R1 412||R1 538||8.92%|
|KeyCare Start R13 801+||R2 198||R2 394||8.92%|
|BonCap||R1 009 – R2 456||R1 129 – R2 748||11.7%|
|BonEssential||R1 477 – R1 731||R1 601 – R1 876||8.4%|
|Primary||R1 904 – R2 240||R2 064 – R2 428||8.4%|
|BonFit (Select)||R2 027||R2 153||6.2%|
|BonSave||R2 486||R2 722||9.5%|
|Standard||R3 080 – R3 556||R3 366 – R3 898||9.5%|
|BonComplete||R3 581||R4 007||11.9%|
|BonClassic||R4 470||R5 002||11.9%|
|BonComprehensive||R6 438||R7 204||12.1%|
For each plan members may manage the premium they pay by selecting
- Any or Associated hospitals and
- to receive their chronic medication from Any, Associated or the State supplier.
|<R700||R 407||R 439||7.9%|
|R701 – R6 800||R 664||R 719||8.3%|
|R6801 – R9 000||R 761||R 824||8.3%|
|R9 001 – R12 500||R 887||R 961||8.3%|
|R12 501+||R1 533||R1 661||8.3%|
|– Associated/Any||R2 133||R2 319||8.7%|
|– Associated/Associated||R1 944||R2 106||8.3%|
|– Associated/State||R1 515||R1 642||8.4%|
|– Any/Any||R2 521||R2 767||9.8%|
|– Any/Associated||R2 304||R2 496||8.3|
|– Any/State||R1 934||R2 090||8.0%|
|– Associated/Any||R3 012||R3 301||9.6%|
|– Associated/Associated||R2 770||R2 988||7.9%|
|– Associated/State||R2 006||R2 141||6.7%|
|– Any/Any||R3 406||R3 732||9.6%|
|– Any/Associated||R3 014||R3 251||7.9%|
|– Any/State||R2 464||R2 658||7.9%|
|– Associated/Any||R5 684||R6 244||9.8%|
|– Associated/Associated||R5 240||R5 729||9.3%|
|– Associated/State||R4 580||R5 033||9.9%|
|– Any/Any||R6 464||R7 101||9.8%|
|– Any/Associated||R5 813||R6 357||9.4%|
|– Any/State||R5 249||R5 713||8.8%|
|Summit||R9 269||R10 187||9.9%|
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