BUSINESS NEWS - South Africa’s medical aid sector is facing unprecedented pressure as members abandon their schemes due to the rising cost of living, stagnant wages and record fuel prices.
According to industry reports, younger South Africans are increasingly excluded from medical aid because they cannot afford to join, while older members are dropping out as premiums rise faster than salaries. This shrinking risk pool threatens the sustainability of private healthcare.
The crisis is particularly acute for ordinary workers. Youth unemployment remains alarmingly high, leaving millions without access to private healthcare.
For those who are employed, medical aid is often one of the first expenses cut when household budgets come under strain.
This trend undermines access to healthcare and raises questions about the long term viability of the system.
In an interview with MISAtv, Eugene Eakduth, principal officer of Moto Health Care, acknowledged the financial challenges facing workers and explained how Moto Health Care is responding.
“We recognise that ordinary workers are under pressure as a result of the war in Iran, which has driven up the price of oil. These costs are passed onto consumers, making life tougher for workers and their families."
Eakduth says because Moto Health Care is a closed scheme with rich reserves, they can increase benefits while keeping healthcare affordable.
MISA, the Motor Industry Staff Association, has warned that workers are being forced to sacrifice healthcare coverage in order to afford basic necessities like food, transport and electricity.
Martlé Keyter, MISA CEO of operations, stresses that the broader issue of affordability must be urgently addressed if workers are to retain access to these critical benefits.
“Unless economic growth and employment improve, medical aid will continue to slip out of reach for many South Africans. For workers, the issue is not just about healthcare. It is about survival in an economy where the cost of living rises faster than wages.”
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