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The three biggest private medical aid providers have announced increases to their medical plans, and as the effects of interest rates bite, the cost inevitably rolls downhill to the people who can least afford it – You.

The changes will come into effect on 1 January 2024, and is relevant to members on Discovery, Bonitas, and Momentum medical schemes.

Discovery Health Medical Scheme will implement a 7.5% average increase across all its plans, although in some cases the increases will be higher. Executive plans go up by 12.9%, as does Coastal Core. While a basic plan like Classic Saver increases by only 3%.

Momentum Medical Scheme will implement a steeper 9.6% price hike across its entire portfolio, while Bonitas Medical Aid will introduce a slightly more manageable 6.9% increase across the board in 2024.

Medical aid providers say the reason for the price increases can be blamed on the interest rate. Rising claims costs are now higher than they were pre-COVID. And rising inflation means the cost per claim has increased notably, too.

Obviously, the medical aid schemes are not going to cut profits to accommodate for any increases in cost, so as a member of these schemes, and someone who can’t pass the burden on any further down, members will have to pay up. Or use the state’s resources.

Either way, 2024 is looking to outdo 2023 when it comes to eating away at your diminishing income.

CEO of Discovery Health, Dr Ryan Noach, says medical aid schemes are still incurring COVID-19 pandemic legacy costs that are running into hundreds of millions annually.

Similarly, Bonitas has seen a 25% increase in the number of mental health hospital admissions. The firm says mental health problems – in part also a legacy of COVID-19 – are at an all-time high. No wonder.

Perhaps it’s an opportunity for South Africans to start shopping around for better deals. It’s easy to just stick with your provider and avoid the complicated process of finding something that suits your pocket better. There are options out there, and so too advisors that can help you stretch your medical aid funds a bit further.

Consequence Private Wealth focuses on general wellness and health as an important part of their overall service. They can help you manage major monthly budgeting items and plan details, which in most instances are purposefully too complex for the normal guy to manage.

Consequence Private Wealth is not tied to any product providers and can objectively assess the full healthcare environment. They look at what is best for you, not how to protect a medical scheme’s bottom line.

It’s worth looking at options outside the status quo.

[source:capetownetc]