South African medical-aid schemes are‚ for the third consecutive year‚ paying out more in claims than they earned in premiums.
This is according to an annual diagnosis report by Alexander Forbes Health.
Alexander Forbes' Roshan Bhana says that the report is a summary of the performance and demographics of all medical aid schemes in the country.
Bhana explains that medical-aid premiums increase above inflation when the yearly claims ratio is imbalanced.
A claims ratio is a calculation of how much of all members’ monthly premiums are paid out in claims.
The perception is that medical aids are making money of us and ripping us off with high costs and high increases every year.— Roshan Bhana, Head Actuary of the Alexander Forbes Health Technical and Actuarial Consulting Solutions Team
The reality is that medical aids are owned by the members that participate in those funds.— Roshan Bhana, Head Actuary of the Alexander Forbes Health Technical and Actuarial Consulting Solutions Team
Listen to Roshan Bhana review the report findings: