eNews Channel Africa

2020-09-23 18:19:31

23 Sep 2020 @ 18h15 - GTC


Broadcast Type: Interview; Tags: Warned, Economic, Impact, Covid19, Drop, Medical, Aid, Membership, Joining, Jill, Larkan, Head, Healthcare, Consulting, Gtc, Joe, Time, Evening, Start, Worth, Unpacking, Medical, Aid, Schemes, Heed, Call, Counts, Council, Freeze

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we'll see later meantime but in the rupee where you telling us a little are going to be bit more about a medical scheme cast you've got got more more on on that's that's right right that that so so we we've been speaking hikes about the and the potential freezing of the increases for two thousand and twenty-one and here is the story is that medical aid begun schemes have announcing their annual increases year for the coming and while the price dropped hikes have been significantly increases remain higher than inflation momentum medical scheme has announced an annual contribution increase of three point nine percent of was eight the hike point two percent last year momentum says the average age of its members below the well industry average which had a positive impact on its claims forecasts and last will remember met shield week announced an increase about five of point nine percent for the year significantly lower than last year now the council of medical aid schemes recently warned economic that the impact of covid-19 could see drop a significant in medical aid membership and joining now for more on me this is jill larkan who's the head of healthcare consulting at gtc joe thank you very much this for your time i evening want i want to start to worth start worth maybe just maybe unpacking why medical aid schemes did not heed call the for the counts from the council to say let's rather freeze the increases while consumers or clients recover from a and difficult two thousand twenty and thank you for the invitation and hello to all your watches and listeners so why didn't they hit stature you know that double edged sword to ask schemes the medical to cause do the because medical the medical scheme scheme to its has to has provide members with benefits in return premium for a if they don't get a premium difficult is to provide benefits remembering that the medical scheme itself belongs to all the members members the themselves choose the trustee trustee group and the group the funds on increases and you want to benefit if unfortunately need you're going to to continue to pay for them i increases think this year are quite and subdued and that's a very positive a very positive sign i'm going forward i think so if we say okay then it's it's reasonable medical aids for to have these increases they can so that provide the best customers service to their why of these increases above inflation perhaps not in and line with inflation will i think they are pretty inflation much in line with there is one that's a little about the metro that's five point six bestmed released that for momentum as you know three point nine bonitas released that four point six are waiting we for the biggest through wants to come i think at the end of next week so we do we do see some do increases this year and and i that's a very think fine previous but i mean in years gel i mean we have very steep seen increases from your big medical providers aid discoveries around nine percent around eight percent and and even though even we though want we to want to best the best service get the get some of this is little bit difficult a and consumers when struggling the truth of the matter is things that they dropped like medical aid yes i absolutely with you agree going into this period are recovering covid where we are seeing a lot employee an benefits falling away or being put on pause one of them being the medical is schemes it is factoring into members sil financial calculation calculation going forward and it is one of the things that is going under a lot of to come pressure members don't downgrade then scheme which is obviously the option that they would look at first then end up cancelling they will that's in have if you don't it actually don't have other any income what option do you have to cancel and i don't right know maybe have some trends in terms of what's happening with clients members or choosing to downgrade or or cancel cancel have their their memberships memberships have we we seen seen a shift in terms of a cover the that members are taking up have over we the years seen a slight in members downgrade benefits but that can be expected because it increases in your medical aid constantly or above the increase in your salary will it carry on eating away home at the take salary which you have going for you are to have to get somewhere in most cases their members would the seen scheme you have a downgrading of schemes of over a period time and i do believe unfortunately that is going to have to carry on whilst everybody is feeling the pinch there isn't solution another that has been brought to the table but we are as a medical scheme community looking at the low cost benefit options now in far more detailed the councillors got more involved much with that as well think we are so i going to see more effective schemes cost becoming available may may not not necessarily necessarily they will will or or they actually actually be in the medical aid space so i think that those in the in the not too distant future will become something which members can consider remembering that every time you downgrade your skin you are actually going to lose out on some sort of benefits jul such an important conversation very that was very little time thank jill you so much that's larkan head of healthcare consulting at gtc now let's take a look at your markets today we are not in the are red we