The relentlessly rising cost of healthcare requires urgent attention as South Africans grapple with yet another financial challenge.

Over the past decade, the cost of health insurance premiums and co-payments has skyrocketed, placing a tremendous burden on individuals and families.

This trend is not only worrying for consumers, but also has significant implications for the healthcare system and the economy as a whole, says Shaun Meintjes, franchise manager and financial advisor at Consult by Momentum.

“A major reason for the increase in healthcare costs is the rising prices for medical services and treatments.

“Advances in medical technology, while useful, come at a high price. New diagnostic tools, surgical procedures and treatments are often expensive and these costs are passed on to consumers.

“The increasing burden of chronic diseases such as diabetes and high blood pressure also requires continuous and expensive treatment, which further drives up costs.”

Meintjes says the knock-on effects of these cost increases are profound.

“It is becoming increasingly difficult for many South Africans to afford comprehensive health insurance. This has led to some people downgrading their insurance or withdrawing from health insurance altogether.

“Those who downgrade their insurance coverage may be inadequately covered in the event of illness and may have to pay high co-payments, which can cripple them financially.

“Anyone who gives up health insurance altogether will be dependent on the public health system, which is already heavily overloaded.”

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Higher health insurance costs consume more household income

He points out that increasing health insurance contributions consumes a larger share of household income, leaving less money for other basic needs such as education, housing and savings.

“This is particularly worrying in a country like South Africa, where many households are already struggling. Wage growth has not kept pace with the rise in health care costs, widening the financial gap.”

Employers are also feeling the effects of the crisis, says Meintjes. Many companies offer their employees health insurance benefits as part of their compensation, but the rising costs of these benefits are becoming unsustainable.

“Employers face difficult decisions: absorb the higher costs, pass them on to employees, or reduce coverage. Covering the costs can strain the company’s finances, while passing them on to employees can lead to dissatisfaction and lower morale, and reducing coverage can leave employees facing high medical costs. It’s a lose-lose situation.”

He says the impact on the healthcare system is also significant.

“As more people downgrade or drop out of their health insurance plans, the risk pool within those plans becomes less healthy. This creates a vicious cycle in which costs continue to rise, causing more people to drop out and driving up premiums further for those who stay.”

The increasing dependence on the public health system puts even more strain on already limited resources and may affect the quality of care, says Meintjes.

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Rising healthcare costs must be addressed with a multifaceted approach

“Addressing rising healthcare costs requires a multi-faceted approach. Policymakers must work closely with healthcare providers, health care providers and other stakeholders to find sustainable solutions.

“This could include regulating the prices of medical services, promoting cost-effective health care practices and ensuring adequate health insurance without making costs prohibitive.”

In addition, according to Meintjes, greater transparency is needed in the pricing of medical services and the functioning of health insurance systems.

“Consumers should be equipped with the information they need to make informed decisions about their health insurance. Education and awareness campaigns can also help educate people on the importance of maintaining adequate coverage and proactively managing their health to avoid costly medical interventions.”

He stresses that the rising cost of healthcare is an urgent problem that requires urgent attention.

“Ensuring accessible and affordable healthcare is not just a matter of financial stability, but also a fundamental aspect of social justice and well-being.

“It is time for all stakeholders to come together to address this challenge and secure a healthier future for all South Africans.”