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Wednesday, 3 December, 2025
HomeMedical AidsGPs dispute exorbitant tariff hike notions

GPs dispute exorbitant tariff hike notions

South African GPs have denied that they are overpaid, saying the perception that their tariff increases are in line with the 10% hike in medical scheme contributions announced for 2026 is incorrect.

They have also called for urgent action, including an increase in the proportion of the medical aid rand allocated to primary care.

In a strongly-worded media statement issued by Dr Angelique Coetzee, vice-chair of the United Forum of Family Practitioners (UFFP), one of the country’s largest independent grouping of private general practitioners, the group said GPs receive only a meagre 3% to 4% tariff increase annually.

This works out to less than R20 extra for a GP consultation. Additionally, the GP tariff includes VAT, rendering the real increase for a practice being closer to 2.6% to 3.5%.

“The public deserves clarity on where their contributions are going. The GP share of the medical scheme rand has been shrinking for years. We are the frontline of care, diagnosing early disease, preventing complications, and reducing unnecessary hospital visits – yet we receive less than five cents of every rand,” said the statement.

According to the Council for Medical Schemes (CMS), GPs receive only 4.5% to 5% of every rand spent by medical schemes. By comparison hospitals absorb 36% to 40% and specialists 20%-25%

Managed care and administration costs also continue to rise faster than GP tariffs, the UFFP group pointed out, adding that the 3% to 4% increase does not cover basic GP practice costs, which have risen far higher than the tariff increases during 2024 and 2025.

Specific increases in this regard include:

*Staff salaries: 6% to 7%
*Medical consumables: 8% to 12%
*Rent and municipal charges: 9% to 12%
*IT systems, EHR, and telecoms: 8%–15%
*Security and insurance: 7% to 10%
*Electricity increases: 12%+

The doctors warned that no business in South Africa can remain viable on a 3% income increase while expenses rise between 8% and 12%.

GP practices are no different, they added, and this gap directly threatens access to affordable primary care.

VAT further erodes the increase. After VAT is deducted a 4% increase becomes 3.48% to the practice and a 3% increase becomes 2.61%

“These increases are not even in line with CPI, let alone medical inflation, and have a negative impact on not only doctors but patients as well as underfunding primary care drives up overall healthcare costs,” said the statement.

The potential consequences of GP practices being financially strained include the possibility of more doctors moving to cash-based practice; fewer young doctors entering family medicine; continuity of care breaks down; patients turn to emergency departments for minor conditions, and inevitably, hospitalisations and downstream specialist costs will surge.”

The group has called for action by urging medical schemes, regulators, and policymakers to:

*Acknowledge that GP tariff increases are far below inflation.
*Increase the proportion of the medical aid rand allocated to primary care.
*Ensure transparent public communication about how member contributions are distributed.
*Recognise the pivotal cost-saving role of GPs in preventing hospitalisation and long-term complications.
*Commit to a multi-year strategy to strengthen primary care funding.

 

UFFP (Open access)

 

See more from MedicalBrief archives:

 

Tariffs regulatory vacuum leaves Family Physicians in limbo

 

Medical aid premium hikes way above inflation

 

How medical aid premiums are calculated and spent

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