Healthcare feels the pinch
While the entire nation is reeling from the effects of load-shedding, interest rate and petrol price hikes, the healthcare sector is faced with an unfavourable reality. The negative effects of these factors, and the ensuing cost to the economy, are bound to have a long-term ripple effect. Rising costs and the resultant economic lethargy, with the looming threat of more hikes, is expected to push the declining growth of medical aid membership even further as people grapple with the shrinking purchasability of their income and have had to readjust their lifestyles. In a country where less than 15% of its population belongs to a medical scheme, concerns are growing that this number is projected to decrease even further as more people cannot afford increasing medical aid contributions.
Unaffordable healthcare and increasing medical aid tariffs have resulted in many South Africans not considering the possibility of joining a medical aid scheme. In contrast, those already on medical aid schemes are constantly on the lookout for economical options to enable them to stretch their money even further. Therefore actions by schemes such as Gen-health Medical Scheme, which have structured their options to provide their members with a cost-effective solution to quality healthcare, have assisted in reducing the large gap in member and company budgets.
According to Boysie Phehlukwayo (pictured right), Curator of Gen-health Medical Scheme, quality healthcare should be accessible despite the current negative impact of the interest rate, the petrol price and load-shedding is having on the economy and personal pockets. It is with this view in mind that Gen-health has structured its current range of economical options to suit even the most hard-pressed budgets, and has been doing so for the past 20 years.
Gen-health’s three healthcare plans address the needs of individuals whether they are looking for an affordable option with comprehensive benefits or a top of the range plan.
It’s newly introduced Primary Cover Plan is aimed directly at the low-income sector as an entry-level plan, starting as little as R349 for a principal member. This plan is income-based and managed through a preferred provider Network.
In addition, Gen-health has recently introduced extensive preventive healthcare benefits in a drive to help members better manage their health by taking pro-active decisions.
Schemes are being pressurised from every side as not only are they affected by the recent economic uncertainty, but find themselves under additional pressure due to rising hospital and other healthcare-related expenses, and extensive government regulation. Many schemes have reacted to this by placing more risk onto the already over-burdened member. By absorbing this risk and not transferring it to the member, Gen-health has held to its promise of ensuring simplified and affordable healthcare to its members.
To date the scheme’s reserves are well above the required level of 25%, currently standing at an audited figure of 44%, and this financial strength ensures peace of mind to members. Its good financial standing was further supported by the credit rating of A by independent agency, Global Credit Rating.
