It’s time for cheaper medical aid options, says AfriForum
Soundbite: Louis Boshoff (English)
Soundbite: Louis Boshoff (Afrikaans)
AfriForum emphasised yesterday, in its commentary on a research report by the Council for Medical Schemes (CMS) regarding low-cost benefit options, that South Africa urgently needs cheaper medical aid options. This RMS report follows in response to a framework proposed in 2015 for low-cost benefit options with the aim of making amendments to existing legislation to enable the implementation of cheaper medical aid options. In its commentary, AfriForum agreed, among other things, that there are shortcomings in the proposed framework, but argued that it would be better to implement the existing proposal than to let an amendment process or alternative proposal drag on for years.
Under the existing Medical Schemes Act 131 of 1998, medical schemes are required to offer a set of prescribed minimum benefits (PMBs) as part of each option. The legislation aims to prevent exploitation but results in even entry-level medical scheme options being unaffordable. The low-cost benefit option framework provides medical schemes with limited exemptions from PMBs.
The CMS released its report on low-cost benefit options in October 2023, and the Minister of Health requested comments in February of this year. AfriForum submitted concise comments on this, outlining the principle that cheaper medical aid options are essential but at the same time highlighting concerns about the existing proposal.
According to Louis Boshoff, AfriForum’s Spokesperson on health, the legislation requiring PMBs has existed since 1998, and research began in 2001 to allow for more affordable medical aid options. “After 24 years of research, discussions, stakeholder consultations and amendments to proposals, no proposal has yet been approved by the Minister. In the meantime, residents of South Africa are longing for cheaper medical aid options.”
Boshoff adds that state healthcare cannot fill the gap left by the absence of affordable medical aid options and that National Health Insurance (NHI) does not offer a solution either. “The Department of Health is ineffective in managing public hospitals and clinics but, at the same time, does not want to relax restrictive regulations for the private sector. It is time for the Minister to make room for private solutions.”