Category Healthcare
SUB CATEGORIES General  |  HIV |  Medical Schemes | 

The Board of Healthcare Funders (BHF) releases a first report on Botswana’s medical schemes landscape

29 July 2020 Board of Healthcare Funders (BHF)

The Board of Healthcare Funders (BHF), a representative body for the continent’s healthcare funding industry has released a report on the Botswana medical funds industry.

This is the first report of its kind to be developed on the medical schemes landscape in Botswana, and the first report of its kind for medical funds in the Southern African Development Community (SADC) region by the BHF.
Botswana currently has a total of five medical funds registered with the Non-Banking Financial Institutions Regulatory Authority (NBFIRA). Four are members of the Board of Healthcare Funders and submitted data for the preparation of the report. The four medical aid funds collectively represent just over 95% of lives covered by medical aid funds in Botswana.

Speaking at the on-line launch of the report, Lesego Pule, Chairman of the Botswana Association of Medical Aid Funds, said, “This report comes at a very critical time for the region and for our country, as it provides insights to enable better understanding of the overall medical aid funds environment in Botswana, but also provides a benchmark to support the improvement of medical aid schemes across the region.”

Pule continued, “Our aim is to drive the improvement in the quality of healthcare in Botswana and create access to affordable health services to the population. This will support and enable us to attain the objectives that we have set out in order to achieve this goal. Our view is that collectively we can achieve meaningful impact for the healthcare industry in our country.”

The report highlights a number of metrics to measure the growth of the medical aid funds in Botswana, assess the performance and sustainability of medical aid funds in the country, measure the risk provision of the medical fund industry, and measure quality of care, which is an important component of Universal Health Coverage (UHC). It also tracks out-of-pocket expenditure by medical aid beneficiaries to ensure that funds provide best value and quality healthcare for members.

According to Charlton Murove, BHF Research Head, “The objective of the report was to evaluate the contributions of the medical aid funds to the health status of the country’s population, identify gaps and establish areas of improvement to enhance member experiences of medical aid funds. The report will be useful for future planning and the establishment of industry-wide responses to some of the challenges that we identified from this research.”
He explained that, “Another key measure included in this report is the measurement of Out of Pocket (OOP) expenditure by medical aid beneficiaries.
“There are some positive aspects that emerged from the report, and some areas that require improvement,” said Murove.

The report found that Botswana is well positioned to deliver to on UHC objective, given its benefit structure and low pricing model. Across the four funds, there were 30 benefit options in 2018 and an improvement in 2019, with 29 benefit options. The average number of options was therefore 7.25 in 2019. Likewise, the average option size increased in 2019.

Furthermore, the average age of beneficiaries in Botswana is relatively low – about 29 years, compared with South Africa where the average medical aid member age is approximately 32 years. Similarly, the pensioner ratio is also low at about 3%, compared with South Africa, for example, where the average pensioner ratio is about 9%.

Murove noted that Botswana still remains among some of the most affordable countries in the region in terms of its medical aid average pricing structures. Compared with South Africa, for example, the average cost of medical aid cover in Botswana is BWP400 compared to R1,300; with the current exchange rate at R1 to BWP 0,70.
The Botswana medical funds environment continues to grow. In 2019 the industry saw an 5.8% growth increase compared with South Africa, for example, where the industry has stagnated. In 2019, the medical scheme industry grew by only 0.5% in 2018 in South Africa. The reserves of these funds, calculated as a proportion of gross annual contributions, grew from 50.6% in 2018 to 51.6%% in 2019.

“Healthy solvency reserves is a good indication and means that these funds have the ability to invest in programmes for the benefit of their members, and in the event of a crisis can shoulder the financial burden on behalf of members,” highlighted Murove.
However, there are some areas that still need improvement. Critical to note is that the disease burden faced by the funds in the country is high and on the increase; the prevalence of HIV and cardiovascular conditions is also very high.

“This means that medical aid funds need to put in place health interventions to manage these conditions to limit their effects on sustainability,” commented Murove.

He explained that the report found that the overall OOP expenditure in Botswana, compared with countries like South Africa, remains relatively high. The OOP expenditure represented approximately 20% of total healthcare expenditure in 2019, compared with South Africa, which represents 19% of total healthcare expenditure. However, these are some of the patterns that would have remained unknown if a report of this nature had not been developed.
“Limiting OOP payments is crucial to supporting households in shouldering the financial burden of healthcare costs to enable the attainment of UHC. This report presents opportunity for reflection around some of these issues and will enable medical aid funds to look at areas of improvement going forward,” said Murove.
“The report provides a benchmark and gives insights to enable a holistic view of our country’s medical aid funds’ landscape and performance. We are not too far off from the mark. We now know where we are doing very well and areas that need improvement. We can now begin to review those areas to ensure alignment with industry best practices, to present the best to our members and a model framework that can be used for the entire region,” concluded Pule.

Quick Polls


How to give affordable and appropriate financial advice to the low income market segment. There is little room on a R50 pm policy for advisers to be remunerated for the time it would it would take to educate & fulfil admin function. What is the solution?


[a] Eliminate non-advice sales / telesales
[b] Implement industry standards for non-advice information
[c] Introduce an insurer-funded pro-bono advice network to low income earners
[d] Reinforce the Policyholder Protection Rules
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