In South Africa, there’s a big rise in demand for low-cost primary health insurance. This is a stark contrast to the stagnant market for traditional medical schemes, according to Damian McHugh, the chief marketing officer of Momentum Health Solutions. Primary healthcare insurance is much cheaper than traditional medical schemes. It isn’t strictly regulated and offers basic health services like visits to GPs and dentists. These plans usually cost a few hundred rand per month.
Employers driving the demand
McHugh explained that employers are increasingly choosing these affordable options to ensure their workers get good health services in the private sector. This helps avoid overcrowded state facilities. At a virtual event for brokers, McHugh shared industry trends showing that the top three primary health insurance providers have seen strong growth in the past 18 months. Over half of the spending by these insurers goes to GP visits, and 14% goes to dental care. Momentum Health Solutions’ Health4Me product saw its membership grow by 15% year-on-year, reaching 153,761 principal members in July. The total number of lives covered rose by 16% to 216,903. By the end of 2022, it covered about 170,000 lives.
Who is choosing primary health insurance?
Most clients are companies wanting better health services for their workers than what the state provides. Labour unions are also increasingly advocating for these benefits. McHugh said this gives quality access to people who may not have had it before. The traditional medical scheme market has had around 9 million members for years. The high costs of these schemes are leading more people to choose discounted options, where they get a discount for sticking to a network of providers selected by the scheme.
Advice for Brokers
McHugh urged brokers to remind their clients that implementing the government’s National Health Insurance (NHI) plans will take years. In the meantime, they should keep their private healthcare cover.