By Heidi Kruger: BHF Head of Corporate Communications & PCNS
The medical schemes industry in South Africa has experienced no real growth in coverage in the last 2 decades with membership stagnating at approximately 7 million lives. But the spend within the private healthcare sector has increased significantly, sitting at approximately R50 billion for 2006.

In contrast, with a spend of roughly R36 billion, the public health sector provides healthcare for the remaining 84% of the population.

It is no wonder then that government is at pains to pursue its goal of a Social Health Insurance, which, through income cross subsidisation, risk cross subsidisation, mandatory cover, the development of low income schemes and addressing alocative inefficiencies in the private sector will cover up to 15 million lives.

Private healthcare funding in the form of medical schemes have come full circle in South Africa since the first scheme was established in 1889 for the employees of de Beers diamond mines and which functioned on the basis of solidarity principles.