All the large open medical schemes in South Africa have announced their contribution increases for 2024. Below is the list. Discovery Health says the average weighted increase across DHMS plans is 7.5% for 2024. Excluding the Medical Savings Accounts, the increase on Risk Contributions is 10.5%.
If you want to review your medical aid plan, please call our Health Department on 011-658-1333, Option 2 or email [email protected].
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Medical aid members should prepare for substantial premium increases from Discovery, Momentum, and Bonitas in January due to inflation and other costs. Discovery Health Medical Scheme will see an average 7.5% increase in premiums, with about 27% of members facing hikes exceeding 10%. The Executive and Coastal Core plans will experience the most significant increases at 12.9%, while the Classic Saver plan will rise by 3%. Momentum Medical Scheme anticipates a 9.6% weighted average premium increase for 2024, and Bonitas Medical Fund plans a 6.9% increase across its nine plans. Damian McHugh, Chief Marketing Officer of Momentum Health Solutions, mentioned rising claims costs and inflation driving up average claim expenses. Dr. Ryan Noach, CEO of Discovery Health, highlighted Covid-19 costs, which totaled R700 million last year, and the impact of high interest rate hikes on members. Bonitas observed a 25% increase in mental health hospital admissions, especially in the 18 to 44 age group, attributed to economic burdens and psycho-social challenges. Profmed Medical Scheme's CEO, Craig Comrie, stressed the challenge of healthcare inflation, driven by advanced medical technologies and the rising prevalence of diseases. He also noted potential cost increases to R2,600 per member per month within a decade, surpassing salary inflation. Rising claims costs are influenced by factors like medical technologies and lifestyle-related health conditions. Changing demographics, an aging population, and increased health conditions contribute to the cost burden. Younger members joining medical schemes later in life due to rising unemployment disrupt the traditional cross-subsidization model. This challenge is unique to South Africa and requires healthcare reform. The issue of rising healthcare costs is not unique to South Africa and presents a global challenge, driven by longer life expectancies and the need for extensive healthcare services. Most of our clients are now installing solar systems because of the incessant loadshedding that are being faced by South Africa. A number of the Insurers are now endorsing policies that effect 01/11/2023 with this and I think there is merit in us conscientizing our clients so that they understand and also know what the policy says in respect of the risk and also what happens if they do not adhere to the warranties : Installed Solar System - means a system comprising of a solar panel array, inverter and other electrical hardware which has been installed by a Suitably Qualified Electrician. Such system comprises of either an Electrical Installation (inclusive of but not limited to inverters and generators) or one or more solar panels that uses energy from the sun combined with Electrical Installations or battery power to generate electricity. Suitably Qualified Electrician - means a licenced electrician who has completed a formal qualification in order to fulfil competency requirements essential by law and in conjunction with relevant work experience as is necessary to perform the job for which they are employed. Such licenced electrician must be registered in terms of the Electrical Installation Regulations (2009) as amended from time to time and must either be a licenced electrician or must employ one as a contracting firm or individual in their full time employ for the purpose of fulfilling Electrical Installations. Electrical Installations - means machinery and equipment, in or on any premises, that is used for the transmission of electrical energy from a point of control to a point of consumption anywhere on the premises, inclusive of any article that forms part of such an installation, irrespective of whether or not it is part of the electrical circuit. THE ENDORSEMENT
The option to replace, reinstate or repair your Installed Solar System remains at the Insurer’s discretion and You must have a valid claim for the Installed Solar System. INSTALLED SOLAR SYSTEM CERTIFICATE OF COMPLIANCE WARRANTY You agree that You will obtain the Certificate of Compliance (COC) once testing, commissioning and hand over has been completed. Insurers reserve the right to call for the COC in the validation of any claim made hereunder if this has not been provided to them at the time of Insurers accepting cover for the Installed Solar System. You will forfeit Your right to claim hereunder if You fail to comply with the COC requirement and the Insurance company(Insurers) will be entitled to reject Your claim if they establish that You have not complied with the provisions of this Installed Solar System Certificate of Compliance Warranty. SPECIFIC EXCLUSIONS: The Insurers will not indemnify You for:
If the Insurance company allege that loss or damage is not covered by this Policy, the burden of proving the contrary will rest with You and they will be entitled to reject Your claim. For our investors investing in Morningstar Managed Portfolios, click below to access the latest performance snapshot, market commentary and market performance summary:
Morningstar SA Managed Portfolios Morningstar Global Managed Portfolios (USD) Market Commentary - SA and Global Market Performance Summary - SA and Global Morningstar's Electric Observer takes an in-depth look at investment opportunities throughout the value chain as EVs and hybrids will be 2 of every 3 autos sold globally by 2030. In 2022, battery electric vehicles represented nearly 10% of global auto sales, up from a little less than 6% in 2021. Much of the growth occurred in China, which has been a leader in EV sales over the past decade. However, with national EV subsidies in China expiring in 2022 and far lower sales in the U.S. and Europe, the market questions if EV sales can continue to grow without subsides. Source: Morningstar
Current market sentiment towards SA government bonds is especially negative. Both local and foreign investors are becoming increasingly concerned about the debt hangover effects and higher borrowing costs arising from continued fiscal slippage on an already bloated balance sheet. Ahead of the 2024 National Election, there is also the potential risk of increased populism affecting more disciplined and pragmatic management of government spending. Source: Morningstar
With equities no longer the only game in town and free money perhaps something of the past, asset allocation has become so much more complicated and a somewhat fascinating puzzle to solve. With the dislocation present in equity markets from a regional as well as sector perspective – where could money be made in the next decade? Because starting yields from fixed income assets today are much higher, could one argue that bonds have more roles to play today than the traditional uncorrelated nature to equities? How do you construct a portfolio to ensure robustness against a world of glaring problems and how do you ensure a real return for clients given much higher inflation these days? Source: Morningstar
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