Lynne Carlisle: Business Day,
WORSENING economic and financial pressures have boosted a general trend of buying down to lower-cost healthcare options.
Thokozani Magwaza, CEO of Sechaba Medical Solutions, the rebranded Sizwe Medical Services, says the problem of healthcare affordability is no longer confined to low-income earners.
"Even the minority who can afford private medical cover are feeling the financial impact of current economic factors, such as interest rate and petrol hikes and the resulting ripple effect.
"Today people weigh up the rand and buy down into lower options to maximise their budgets. So while previously most scheme members sat on the higher options, this has definitely shifted.
"The trend for new members joining medical schemes is definitely at the lower end of the product range."
He says when affordability is tackled it should not only be at entrance level but must be addressed at all levels.
He says for example members once on top-end full benefit options may switch to middle affordable options with all or most benefits, or to the lower end, cheapest, primary options. Savings may range from R200 upwards.
Magwaza says over-regulation of the private health¬care sector is doing little to assist the situation.
"Not many of the legislative interventions are helping the sustainability of private healthcare provision but have tipped the demand-/supply scales by increasing demand yet limiting supply through a highly regulated industry. This tends to raise costs rather than address the critical affordability issue.
"We need a model that, together with the government, will find real and prac¬tical solutions to current affordability problems.
"Sechaba supports a private-public partnership to find these solutions and will work with the government and industry bodies and play¬ers to find long-term sustainable solutions."
A survey on pricing for SA's lower income medical scheme (Urns) found that low-income earners spend on average R105 a month on pri¬vate medical cover. SA's suggested
Lims product options were priced at about R200 per life per month.
"Legislation has affected the affordability aspect of healthcare negatively, while the increase in regulations has made an already complex industry almost impossible for the man on the street to understand," says Magwaza.
