More pain due from medical aid plans

Consumers will feel the pinch as medical aid premiums again rise above consumer price inflation next year.

According to Discovery Health CEO Jonathan Broomberg, rising premiums are partly caused by more people going to hospital for non-surgical procedures as a result of new hospitals being built.

Discovery Health Medical Scheme announced increases between 7.8% and 14.9% for 2017. The average increase is 10.2%.

While other medical aids have yet to release their proposed increases for 2017, they are likely to be higher than CPI.

Bonitas medical scheme said it has seen more members with chronic illness.

"The pattern that we found worrying started emerging in November 2015. At the time we believed it to be an isolated spike. However, in February and April 2016 there were subsequent spikes in hospital admissions," the scheme said.

The South African National Consumer Union criticised Discovery's planned increases, calling them "totally outrageous and unacceptable".

Ina Wilken, vice chairman of the consumer union, said "these increases will force many consumers to abandon their medical aid cover".

"After paying such exorbitant prices on a monthly basis, some consumers reach the expense limit through no fault of their own - and then have to pay all further expenses out of pocket until the gap has been filled.

"There is no way that the man on the street can afford these kinds of increases."

Globally, healthcare inflation rises more than consumer inflation does every year.