2022 Benefits and Contributions
Nobody needs to be reminded of how abnormal last year was. Covid-19 arrived in South Africa, we went into lockdown and had no idea what the future would bring. We thought twice about leaving our homes, seeing doctors, or seeking treatments just to prevent exposure to the virus. Today we find ourselves in a much better place than this time last year and can access vaccines to protect our families' as well as our own health, and start planning somewhat more normal lives again. Following the extreme dip in the number of claims received in the first quarter of 2020, this year has seen claims returning to almost normal levels, indicating that 2022 will see an increased demand for medical services foregone in the previous two years. The Covid-19 uncertainty remains and, until we achieve population immunity, further waves of infection are likely to continue, bringing with them the high cost of hospitalisation and related costs. The Scheme must remain in a healthy financial position to be able to provide healthcare funding for the long-term. The 2021 contribution increase was the lowest seen in decades; however, keeping this abnormally lower than the normal claims experience would not be sustainable. Consequently, the increase for 2022, agreed by the Trustees, is 6% across all Plans which is projected to be sufficient to fund the anticipated healthcare costs.
The AMS plans offer comprehensive benefits when compared to the industry and at rates significantly below similar open scheme products. The Value Care Plan in particular offers exceptional cover to assist our lower-income members, who may otherwise be unlikely to afford care in the open market.
Benefits for 2022
The Scheme is cognisant of the economic pressures faced by its members and participating employer groups, both in terms of benefit design and contribution increases, but has an obligation to provide for healthcare provider tariff increases and medical inflation. In order to ensure stability and continuity through the uncertainty as we hopefully return to normal, the Board of Trustees decided, after careful consideration, to keep all benefits, their limits, as well as co-payments at the same level as the 2021 benefits.
Published: October 2021.