Good news for those on Momentum Health. Weighted average contribution increase for 2020 is 8.2%.

This is one of the lowest increases in the market. Sounds like good news compared to the other schemes however with this increase each year, eventually, if not very shortly, members will need to buy down and sacrifice benefits due to affordability. 

If a member is healthy, the question that still remains is whether it fair to be paying for a member that is unhealthy and takes little care of themselves?

After 25 years in healthcare and the financial services industry, cross-subsidisation really goes against my grain. Cross-subsidisation is where the healthy pay for the sickly, the low claimants pay for the high claimants and the young pay for the old (fair). It is not so much the principle of cross-subsidation but rather, that we just accept this is how it should work for all.

I, for one, do not believe it’s fair for all. However, there is some light at the end of this tunnel from total cross-subsidisation to a limited form. It starts with the best method and steps to correctly choose a medical aid scheme option. The traditional method is not optimal for cost containment and if interested we can show you what we mean. Just take a look at your premium each month and share if that is optimal. if it is, great you one of the few that will say that going into 2020.

Realise that by due process, when implementing proper selection criteria, a member of a medical aid scheme can realistically reduce their premium by between 15 – 45%, have greater access to your own savings and not be part of the higher increases of 9.5% and more on some options of the medical scheme.

Back to cross subsidisation 101. It is what’s happening across all schemes, even though there are health programs in place and members are being rewarded for healthy behaviour change.

However, as you know if a member of some of the larger schemes, these rewards are harder to attain year on year and in many instances only a small percentage of the scheme population really benefit financially from the reward program – that is from the health perspective and not being rewarded a slush puppy at the movies. Some may think this is a reward however if the goal is cost containment or control of medical and health spend, the slush puppy is keeping you in the system on being reliant on the medical scheme benefits. How?

Simple answer is because if we keep putting poison (slush puppy example) into our body, each one of us will most certainly be seeing the sooner or later and potentially end up a diabetic with cardiovascular disease or cancer. This is the reality folks. It’s happening as you read this post. Check out the claim profile of your scheme. You will be shell-shocked.

The only way to take control of these costs is too . . . (complete the sentence)

If you cannot complete the sentence, you may just need our help to show you how to use the funds in the medical aid system to fund your interventions to better health. It is not difficult, there is a method and 3 easy steps you need to know for it to work.

If interested to know what really contributed to the increases for 2020, read more here . It is generally the same across all scheme, however some more than others, but on the whole, far too high for my liking.

Peter Šmanjak

Owner and Founder at Infinite Risk

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