Consumers may be surprised by some of the low contribution increases or deferred increases published by medical schemes for 2022.
In a pandemic, one would expect a significant increase in the cost of healthcare. However, claiming patterns indicate that utilisation is lower for all kinds of care. Also, there is no sign of a return to previous claiming levels.
What does this mean for medical schemes?
Medical schemes continue to make material surpluses. Solvency is at record high levels, approximately R73 billion. The big question is how we use these reserves to benefit members. It appears not to be that easy to shed reserves, leaving schemes with four choices.
- Continuing with historic increases would mean that reserves will continue to climb.
- Reducing the annual increase by only 1% will cause a downward trajectory in solvency.
- A zero per cent increase can place a scheme on a loss-making course, possibly causing double-digit increases in the future.
- Deferring increases to later in the year appears to be more appropriate as it does not impact the schemes earnings in the long run.
What does this mean for members?
Increases lower than inflation or a deferment of increases bring financial relief to cash strapped consumers. However, it causes more confusion and challenges with different increase dates and benefit alignments.
It is evident that members claimed less from their medical savings or in-scheme benefits. The result is the likelihood of being over-insured. This new normal emphasises the importance of a comprehensive needs analysis and expert advice.
How can Phoenix Healthcare Consultants help you?
You can appoint Phoenix as your broker or sign a third-party consent form. This will unlock a comprehensive bouquet of support, intermediary and advisory services at no cost. Phoenix will be your first point of call for any enquiries or support services. Clients love our approach to customer services of compassionate listening and providing feedback in a spirit of empathy and kindness. Our hand-holding approach is to take you all the way to the goal or solution.
What about your medical scheme annual review?
Our yearend review support and advisory services include.
- Comprehensive needs analysis
- Review of your claim’s history and benefit utilisation
- Medical savings or in-scheme benefit review
- Investigation relating to registered chronic conditions and medication
- Disease management review
- Self-payment gap analysis
The above comprehensive review will enable Phoenix to determine if you are.
- over
- under
- appropriately insured
Since Phoenix is accredited with the Council for Medical Schemes, licensed for long – and short-term insurance with the Financial Conduct Authority, we can bundle products to enhance your benefits whilst saving you money.
All our clients have access to Phoenix Assist, a core assistance and support programme giving you and your family access to the below benefits at no cost!
- A 24/7 medical advice line
- Covid-19 information and advice line
- Trauma counselling
- Emotional counselling
- HIV prevention, including rape and assault support and counselling
- Medical emergency response
- Medical emergency transportation services
There is no time like the present to obtain an independent, unbiased and new perspective of your medical scheme benefits.
Our mission is to optimise your benefit to cost ratio to stop the rising cost of healthcare from eating away at your budget and net disposable income.
Complete the contact form on the right for a no-obligation free consultation.
Author: Clayton Samsodien
Group CEO