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Cape Town - Around two million Discovery Health members will pay 9.8% more for their medical cover from next year.
This tariff increase by South Africa's biggest open medical fund falls within the range of CPI+3% that the Council for Medical Schemes (CMS) prescribes.
According to Optivest Health Services chief executive Marcel du Toit, it is expected that most medical funds will announce a higher increase for next year, especially those with reserves currently below 25%.
"Discovery may be the exception rather than the rule with its increase of only 9.8%," says Du Toit.
Because of cost pressures many medical funds are reducing their benefit options, but chief executive Neville Koopowitz declares that all Discovery Health benefits are being maintained or improved.
Global Credit Ratings' has rated Discovery Health's ability to pay claims as AA+. The fund's reserves are currently more than R6bn, which puts it above the required 25%.
The fund's KeyCare plan, which is the fastest-growing low-income product in the industry, has now swelled to more than 240 000 members. According to Koopowitz some 60% of these members did not previously have medical insurance.
Funds that announced their tariff increases in September include BESTmed and Keyhealth. Profmed, Fedhealth, Momentum and Topmed will announce theirs in October.
- Sake24.com
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