Thursday, 28 October, 2021
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CMS ponders approval of first ever cut in medical aid premiums

Medical aid role players are looking to the Council for Medical Schemes (CMS) to see if it will approve what is described as the “first ever” reduction in medical scheme premiums, reports Beeld.

One of the largest schemes, Bonitas, has announced a reduction of premiums for 2022 for its cheapest option, BonStart, after increases in reserves. Bonitas’ reserves increased from R4.3bn in 2019 to R6bn due to decreased utilisation of benefits during the pandemic. The average increase across all Bonitas options is, however, 4.8%.

The CMS recommended an inflation-like increase of 4.2% to all medical schemes. Clayton Samsodien of medical scheme brokerage Phoenix Financial Services, says it remains to be seen if the CMS will allow a decrease in premiums, as it is seen as an irresponsible practice to lower premiums through reserves.

 

Beeld article – Raar maar waar: premie daal vir die Bonitas plan (Restricted access)

 

See more from MedicalBrief archives:

 

Regulator supports medical scheme fee hikes over COVID-19 concerns

 

Medical schemes administrator 'not doing enough' as regards payment holidays on premiums

 

SA’s private healthcare sector is starting to recover from the pandemic

 

High levels of premium inflation 'unavoidable', says Discovery CEO

 

 

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