Johannesburg, South Africa – 30 September 2024 –
While there is more positivity around the South African economy, unemployment still remains high, and consumers are still having to make difficult financial choices after years of low economic growth. The medical scheme industry is not immune to this trend. Consumers are having to take a long hard look at their financial constraints into when evaluating their medical scheme choices based on the cover they can afford, rather than the cover they actually need, sometimes leaving them at risk moving forward.
Medical inflation has increased above CPI once again, which during the COVID-19 years was suppressed below CPI. This, coupled with the increase in the utilisation of healthcare services, has resulted in increased claims costs.
Momentum Medical Scheme has stated that it will introduce benefit enhancements aimed at improving the overall healthcare experience for its members in 2025. “These enhancements reflect our dedication to offering innovative and sustainable healthcare solutions that cater to the diverse needs of the South African market. By focusing on choice and value without having to buy down to save money,” says Damian McHugh, Chief Marketing Officer, Momentum Health Solutions.
The enhancements according to Momentum, will include an updated low-income option, easier and more accessible rewards, the ability to use these rewards to pay medical scheme contributions, and an easy digital process that demonstrates how much consumers can save monthly without having to buy down. This ensures Momentum Medical Scheme’s members have access to the best possible care and can buy better value.
In addition to these benefit enhancements, Momentum Medical Scheme will implement an annual contribution adjustment of 9.4% to ensure the continued financial stability and sustainability of its offerings.
The medical aid scheme says that none of its members will experience a double digit increase and there are no benefit reductions – for the 10th year in a row. The increase is expected to be one of the lower increases the industry and, in so doing, the trend of Momentum Medical Scheme having the lowest average increase amongst the large medical schemes over the past decade will continue.
Throughout 2024, medical schemes have focused on enhancing member engagement and improving service delivery. Digital health solutions, telemedicine, and wellness programmes have become more prevalent, offering members convenient and cost-effective ways to manage their health. These innovations have improved access to care, controlled costs and enhanced health outcomes.
Momentum Health4Me, Momentum Health Solutions’ health insurance product, has seen significant growth in membership, with an increase of more than 5% over the last six months, reaching a total of more than 220 000 beneficiaries. Designed to provide affordable healthcare solutions to individuals and families who may not have access to traditional medical aid, Health4Me has expanded its reach and impact to become one of the largest healthcare insurance providers in the market.
“Health4Me has been instrumental in bridging the gap in healthcare access, offering essential health benefits at an affordable price. The product’s growth reflects our commitment to inclusivity and our understanding of the diverse needs of the South African population,” says McHugh.
“In 2025, Momentum Multiply will continue to promote healthier lifestyles among members, reinforcing the belief that your health is your wealth. We understand that good health is the foundation of a fulfilling life, and the most important asset one can have. Momentum Multiply will introduce new features and enhancements to further motivate and support members in their health journeys.” says McHugh.
By leveraging data and personalised insights, Momentum Multiply will continue to offer tailored recommendations and rewards that align with individual health goals, making it easier for members to stay on track and achieve their wellness objectives,” explains McHugh. Members will be able to use those rewards to pay their month’s medical scheme contributions, thereby leveraging their health to maintain the cover they need.
