The Board of Healthcare Funders (BHF) is disappointed by the judgment handed down yesterday in the North Gauteng High Court on our application to allow for medical schemes to offer Low Cost Benefit Options or LCBOs. We are currently studying the judgment in detail, in consultation with our legal counsel, but we can announce that we will be appealing the ruling.
Our intention in compelling the Council for Medical Schemes to permit medical schemes to offer LCBOs is to enable broader access to affordable private medical cover for lower-income South Africans. LCBOs, which are pared down medical aid packages, represent an immediate, practical and sustainable solution to expand private healthcare access to an additional 10 million South Africans who can’t afford full medical scheme cover, but are paying pay out of pocket expenses for private healthcare providers.
The Stats SA 2020 General Household Survey revealed that nearly 30% of uninsured South Africans use private healthcare providers as their first point of care. This is in addition to the 16% of the population covered by medical schemes, of which more than two-thirds come from previously disadvantaged groups. This means that nearly half the population relies on private healthcare in some form but the majority are being forced to pay out of their own pockets for these services.
Expanding access to LCBOs would benefit these low-income earners the most and would make a significant contribution towards government’s broader goal of achieving universal health coverage. It would also alleviate pressure on the overburdened public health system.
The BHF remains committed to constructive engagement with all stakeholders, including the Council for Medical Schemes and the Department of Health. Collaboration between the private and public sector is the only way to ensure a healthcare system that works for all.
About the Board of Healthcare Funders:
The Board of Healthcare Funders (BHF) is a non-profit company that works in the best interest of an effective and sustainable healthcare for all. It represents members in seven countries across Africa. For more information on the BHF and its members, please visit: https://bhfglobal.com
For further information or interview requests contact:
Tracè Venter
072 617 4798