Discovery vs Bonitas vs Momentum

South Africa’s three largest open medical schemes have released their full prices for the plans in 2021, reflecting the industry’s call to freeze prices or keep increases limited to low rates due to broader economic woes.

In a year in which consumers faced unprecedented financial pressure due to the Covid-19 pandemic, healthcare members will be relieved to see their plan costs remain at the same levels as in 2020.

The country’s largest scheme by membership, Discovery Health, has chosen to freeze prices until mid-2021, when a viable vaccine for Covid-19 is expected to become available.

The second and third largest schemes, Bonitas and Momentum Health, respectively, will implement increases significantly lower than the industry standard of IPC + 4%.

Of the big three, however, only Discovery and Momentum have heeded the Council for Medical Schemes (CMS) call earlier this year for companies to implement a freeze when possible. If not possible, the CMS recommended that the increases be capped at 3.9%, in line with inflation.

Discovery achieved a freeze, in line with CMS ‘recommendation, while Momentum managed to maintain most, not all, increases capped at 3.9%.

Bonitas, meanwhile, managed to freeze rates on one plan, and the rest saw increases of between 4% and 7%, with a weighted average increase of 4.6%.

The CMS said that despite the accumulated cost savings in most schemes due to a notable decrease in utilization during the lockdown, there was a risk that the savings would be wiped out due to the Covid-19 spike in the country, as well as due to increased demand.

“Consequently, certain schemes may need to increase their contribution to mitigate the risk of high-cost claims and the consequent erosion of reserves,” he said.

“In cases where the schemes cannot freeze their contribution increase for 2021, CMS recommends that the schemes limit their increases to 3.9% in line with the CPI.”

“It is the CMS view that increases above the inflationary contribution are simply above the budget line for most consumers and therefore unaffordable for most members of medical plans.

“Similarly, despite unique industry-specific cost drivers, such as the impact of the weaker rand exchange rate, disease burden, etc., CMS is still the position that increasing hospital fees and therapeutic devices should also capped at 3.9% in line with inflation, ”he said.

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Discovery

Following the recommendations of CMS, Discovery has chosen to freeze the prices of its plans for the first six months of 2021, with increases only expected thereafter. The group said that price increases for the second half of the year will be capped at CPI + 2%.

This means that the prices, for now, will be the same as in 2020:

Executive

Comprehensive

Priority

Saver

Smart

Nucleus

KeyCare

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Beauties

Bonitas, South Africa’s second-largest open healthcare plan, announced a 4.6% weighted increase across all its plans for 2021, ranging from 0% to 7%.

The only plan to see a rate freeze is the BonFit Select plan, with the most comprehensive plans seeing the biggest increases.

The group has also introduced two new plans for 2021. The plans, BonStart and BonStart Plus, are designed for economically active singles or couples living in the larger metropolitan areas.

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Impulse

Momentum Medical Scheme is South Africa’s third largest open health care plan and announced a weighted average annual contribution increase of 3.9% for 2021.

The figures below are starting prices, with more variety offered in each group of plans.

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Read: Best and Worst Important Medical Aids in South Africa