Hospitals swallow money

02 September 2015 - 02:12 By Katharine Child

Hospital bills devour the biggest chunk of medical aid premiums, according to the Council for Medical Schemes. The medical aid regulator's annual report, released yesterday, noted above-inflation increases in health spending, an international trend.The report showed that the number of medical aid members who were chronically ill last year had skyrocketed since 2008, and the number of members with type2 diabetes had increased by 68%.The council warned that without population-wide measures to prevent rising rates of chronic disease the costs of treatment would have a "severe impact" on medical aid schemes.Medical aids raked in R140.2-billion last year and paid out R126-billion - or 88.6% - for medical claims.Overall, medical aids spent 11.1% more on hospitals, doctors and medicines than in 2013. Above-inflation spending leads to higher medical aid premiums.About 37% of all premium money was paid out for hospital stays, 23% to specialists but only 6% to GPs.The council worked out that, after medical aids had paid for doctors or hospitals, consumers were, on average, responsible for about 16% of each bill. This "out-of-pocket spending" amounted to an average of R6,000 a member a year.The trustees of some schemes, who are not full-time employees, are still coining it.The 17 trustees of the Government Employee Medical Scheme earned an average of R500,000 a year for attending meetings, and for accommodation and meal expenses. Discovery Health trustees received an average of R619,000 each; those of Bonitas R430,000 each...

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