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Medicine Price Increase Adds R1bn to Scheme Costs

The medicine price increase could add R1bn to medical scheme spending in 2027, with implications for budgets, contributions and members.
Medicine price increase adds pressure to South African medical scheme budgets
Image | Infinitum Produx | Shutterstock/2403600961

An extraordinary medicine price increase could add R1bn to medical schemes’ costs in 2027, after schemes submitted their budgets.

The Health Department announced the additional 2.88% single exit price (SEP) adjustment on 30 September, effective from 1 October. It cited cost pressures for pharmaceutical manufacturers, including geopolitical tensions.

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