The inaugural State of Medical Schemes Report reveals that almost 9 million South Africans who earn above the tax threshold are choosing not to join medical schemes.
Affordability concerns are preventing nearly 9 million South Africans from joining medical schemes, despite earning above the tax threshold.
The Health Funders Association’s (HFA) inaugural State of Medical Schemes Report (SOMS), released this week, estimates that 8.79 million South Africans earn enough to join a medical scheme but remain outside the system, opting instead to pay out of pocket for medical expenses.
According to the HFA, the average medical scheme contribution is approximately R2 400 a month, which one analyst described as significant.
Luyanda Njilo, senior research analyst at Nedbank Corporate and Investment Banking, said income distribution helps explain the pressure.
