Medical aid claims cost N$1,1b in first three months

Private medical aid claims in the first three months of 2024 cost N$1,1 billion.

This is from 215 701 beneficiaries at 31 March 2024. For every 100 principal members, there are approximately 121 dependants.

The Namibia Financial Institutions Supervisory Authority (Namfisa) stated in its first quarter report, published on Wednesday, that this is an increase from the previous three months.

“The industry’s healthcare expenditure claims increased by 12% to N$1,1 billion during the first quarter of 2024 and decreased by 2,5% year-on-year,” the report reads.

Out of a population of roughly three million, only a little over 200 000 people can afford private healthcare.This quarterly increase was due to pricing, new benefits and behaviour.

“A combination of members’ claims behaviour, pricing of healthcare services and products, and the availability of new benefits during the quarter under review resulted in the quarterly growth of the industry’s claims expenses,” the report reads.

Non-healthcare costs incurred by medical aid funds was N$138,9 million.

These costs include administration costs, fees for managing health benefits, operational expenditure and net-reinsurance expenditure.

“It represents a decrease of 2,8% from the previous quarter and an increase of 3,7% on an annual basis.

Administration costs remained the highest contributor to the total non-healthcare expenditure,” the report says.

The medical aid funds’ reserves stood at N$1,6 billion.

“However, three open medical aid funds, which represented 51,1% of the industry’s total beneficiaries as at 31 March 2024, reported a reserve level below the prudential requirement,” the report reads.

From the 215 701 members, the medical aids collected N$1,5 billion in the first quarter.

“The total contributions increased by 10,7% to N$1,5 billion for the quarter ended 31 March 2024, and grew by 12,1% on an annual basis,” it reads.

Namfisa said the quarterly increase in the contributions received was in alignment with the annual increments affected during the quarter under review.

“The average contribution income per beneficiary was N$6 999 for the quarter ended 31 March,” the report reads.