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Category Healthcare
SUB CATEGORIES General  |  HIV |  Medical Schemes | 

5.4% increase from Discovery

10 August 2004 Angelo Coppola

Discovery has announced a contribution increase of 5.4% for the Discovery Health medical scheme, and also stated that they would reach the 25% reserve minimum as required by law, which translates to about R3bn in assets, thus taking care of the solvency r

The reserves have been built up steadily over the last number of years from the margins on member contributions, which dropped from close to 10%, to their current levels of around 5%.

Discovery CEO Adrian Gore said that the increase was well below market expectations.

According to Gore the cover has been maintained across the board and extended in area such as chronic illness, prescribed medication, dental, scopes and scans.

The company also announced that they would increase the doctor tariff from the R120 fee, as set by the National Reference Price List, to R170 per consultation.

Quick Polls

QUESTION

Healthcare brokers have long complained about inflation-plus medical scheme contribution increases; but pandemic may have changed things. What will pandemic-induced changes in hospital utilisation do to medical scheme contribution increase patterns?

ANSWER

Below inflation increase for 2022, then back to inflation-plus
Long-term trend of below inflation increases
Inflation-linked hikes for 2022, then back to inflation-plus
This is a 2-year hiccup, inflation-plus increase trend remains in place
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