Healthcare costs on the rise: essential tips for South Africans

12 April 2024
Charl Greeff

HEALTHCARE COSTS ON THE RISE:
ESSENTIAL TIPS FOR SOUTH AFRICANS

The rising healthcare costs in South Africa have emerged as a growing concern, becoming a big worry for our financial stability and overall health. As the expenses associated with medical treatments continue to increase, it becomes crucial for us to proactively investigate and implement effective strategies to help manage these financial commitments. As important as health coverage is, investing in a healthy diet also goes a long way, as it goes hand in hand with preventing health issues.

Here are vital points all South Africans should be aware of
when it comes to their health and wellbeing:

1. Health Inflation

Stats SA reports a health inflation rate of 6.5% in September 2023, the highest since November 2017. Prices for medical products increased by 7.5% in the same period.

2. Financial Impact:

Rising healthcare costs can strain finances, leaving you vulnerable during medical emergencies.

3. Public Healthcare Challenges:

South Africa’s public healthcare system faces issues of insufficient funding and staffing, resulting in long queues, poor-quality treatment, and surgery delays.

4. Doctor Shortage:

In the public sector, there’s a severe shortage of doctors, with a ratio of one doctor to 2,457 patients, compared to one doctor to 571 patients in the private sector.

5. Private Healthcare Accessibility:

Private healthcare is often unaffordable for many South Africans, with annual medical scheme contribution increases surpassing the consumer price index.

6. Hospitalisation Costs:

Hospital stays come with significant costs, with a bed in a general ward priced at around R4,000 per night and R4,900 for a private ward. ICU costs can be significantly higher, ranging from R16,800 to over R19,900 per night. (Kay, 2023).

Explore potentially life-saving strategies with these practical tips:

1. Select a healthcare plan that fits your needs and budget:

Research options based on premium costs, coverage, and network providers.
Compare plans thoroughly.
Understand the benefits before making any changes to your healthcare plan.

2. More savings or saving more?

Higher premiums often accompany more extensive savings plans.
Assess whether paying more monthly aligns with your financial goals.
Consider the advantages and disadvantages of each decision.
Evaluate your lifestyle and financial discipline.

3. Be an informed consumer:

Talk openly with healthcare providers about costs.
Uphold a good relationship with your health insurance provider.
Save for medical emergencies to protect financial wellbeing.
Take charge of managing your healthcare costs.
Prioritise your wellbeing for a healthier life.

As South Africans, we always try to save money and cut unnecessary costs, but when it comes to your health, it’s crucial not to downgrade your health plan, especially to a point where it doesn’t meet your needs or cancel it altogether. Your health is paramount, so protect it with the right healthcare coverage. (McHugh, 2022).

Avoid these 5 common mistakes when choosing your health insurance plan:

1. Rushing through enrolment options:

Avoid hasty decisions based on recommendations from others.
Research and evaluate plans based on your specific health needs and budget.
When enrolling, compare policies to identify the most suitable one.
Understand coverages, including premiums, and consider your medical requirements for the upcoming year.
Prioritise affordability while ensuring comprehensive coverage for your medical requirements.

2. Overlooking Policy Documents:

Don’t skip or skim through policy terms and conditions.
Carefully read each policy’s details to understand what your health plan offers and what is expected of you.

3. Getting too focused on premiums:

Ultimately, a common error in selecting health insurance is fixating excessively on the monthly premium.
It’s essential to remember that “the true value of health insurance coverage depends on two things: what it costs and what it covers.” (Fool, 2017).

4. Not taking full advantage of possible benefits offered:

Depending on the insurance plan, some incentivise a policyholder that has not claimed over time with a payout in the form of a portion of the premium(s) paid over some years.

5. Settling for insufficient coverage:

Some individuals often hold back on paying for particular coverage to keep the premium low. While this may be a short-term solution, one can never be assured that the low premium will result in a sufficient payout when a medical emergency arises.
Thus, when choosing coverage, ensure the policy provides adequate coverage for your medical needs.
The correct health insurance can provide for you and safeguard your financial security. (Melita, 2023).

Conclusion

In summary, South Africans face rising healthcare costs, emphasising the need for strategic planning. Key considerations include the high health inflation rate, public and private healthcare challenges, and potential financial strain from hospitalisation costs.

To navigate these challenges, adopt life-saving strategies such as choosing a suitable healthcare plan, being an informed consumer, and avoiding common insurance mistakes. Prioritise your health, make informed choices, and ensure your coverage meets your needs. Remember, your wellbeing is a priority, and the right health insurance is crucial for a secure future.

This blog post is for informational purposes only and should not be considered medical advice. Please consult with a healthcare professional for personalized guidance.

References

Fool, T. M. (2017, July 26). 3 Health Insurance Misunderstandings That Could Cost You. Retrieved from Nasdaq:
https://www.nasdaq.com/articles/3-health-insurance-misunderstandings-could-cost-you-2017-07-26

Kay, A. (2023, November 8). It’s expensive to be healthy: You have to save to save your life. Retrieved from Moneyweb:
https://www.moneyweb.co.za/financial-advisor-views/its-expensive-to-be-healthy-you-have-to-save-to-save-your-life/

McHugh, D. (2022, December 2). How South Africans can navigate the rising cost of healthcare in 2023. Retrieved from FA News:
https://www.fanews.co.za/article/healthcare/6/medical-schemes/1078/how-south-africans-can-navigate-the-rising-cost-of-healthcare-in-2023/36053

Melita. (2023, April 19). 5 Common Mistakes To Avoid When Choosing a Health Insurance Plan. Retrieved from Melita:
https://www.shapeyourhappiness.com/the-importance-of-social-connection-and-why-you-need-it-in-your-life/