South African Healthcare Funding Changing

The private South African healthcare funding environment is quickly changing, as traditionally, it mainly depended on medical aid schemes and other statutory funding mechanisms such as the Road Accident Fund and the Compensation for Occupational Injuries and Diseases Fund.

With the Demarcation Act distinguishing health policies from medical schemes, a wave opened an opportunity for affordable health insurance to join in. This will change healthcare funding in a big way from what the public and providers are used to.

Opportunities due to Change in South African Healthcare Funding

The shift not only opens access to private healthcare to people who had never had access to anything more than available in private but also offers businesses a refreshed capacity and information and changes the dynamics of how private healthcare functions in the country.

South Africa is a country of dual economies where first and third-world realities co-exist. Such a distinction impacts the financial aspects but also affects epidemiological realities, which incapacitates the effectiveness of risk management tools such as underwriting, product design and proper decision-making for healthcare purposes.

Health care products and services are utilized differently by the population existing in the two worlds (first and third world), which also implies…