content - mymembership...broker costs increased by 9.6% to r2.2-bn in 2017. specctramed and...
TRANSCRIPT
SAPPFHEALTHVIEW:October2018
Content:FoodforThoughtViewonGovernmentFinancialViewViewonPharmaceuticals
SpecialNewsViewonMedicalSchemesSpecialNotices
Foodforthought
WillNHIbejustanotherstate-ownedenterprise?
AreportbyorganisationscollaboratingundertheumbrellaofthePeople’sHealthMovementSouthAfricawassubmittedtotheInternationalCommitteeonCultural,EconomicandSocialRights(ICESCR),interrogating-amongotherthings-theflawsandpitfallsofthecountry’sNationalHealthInsurance(NHI)proposal.
ProfessorLeslieLondonfromtheSchoolofPublicHealthandFamilyMedicineatUCT,andoneof
theauthorsofthereport,saidtheinternationalhumanrightssystemdoesnothavetheteethofalegal
process,butitisquitepowerfulifthecommitteerecommends,forexample,strongeroversightover
mentalhealthservices,orgreaterresources.
AboutathirdofthereportfocusedontheNationalHealthInsurance(NHI)proposal.Areasofconcern
includetheabsenceofanyreferencetopreventativehealth;capacityandresourceconstraints,and
governance.
TheNHI’sideaofseparatingtheproviderfromthepurchaserisaUK-basedinnovation,Londonsaid,
butintheUKtherearehighly-skilledpeople,whoarenotdirectlyinvolvedinclinicalcare,makingthe
systemwork.Hesaiditrequiresoverheadstomakeitwork,anditalsorequireslevelsofskillwhich
wearenotseeinginthepublicsectoratthemoment.
Londonsaidthereisarealdangerthatatlocallevel,peoplewhoarechargedwithpurchasing
servicesfortheirdistrict,willnotbeabletoactuallygetthatdone,norbeabletotranslatepopulation
needintothekindsofservicesthatarerequired.
Readmoreintheattachment:PHMSASubmission
NationalHealthInsurance:'goingnowhereslowly'
“FinanceMinisterTitoMboweni’smaiden
Medium-TermBudgetPolicyStatementlastweek
laidbarejusthowlittleprogressthegovernment
ismakingonNationalHealthInsurance(NHI).”-
EditorialComment:BusinessDay,30October2018.
“ThefactthattheTreasuryshavedmorethanhalf
abillionrandofftheR2.3-bnNHIgrantit
allocatedtotheDepartmentofHealth(DoH)in
theFebruarybudgetsignalshowlittlefaithithas
inthedepartment’scapacitytospendthemoney.
"Withgoodreason.Thedepartmenthasbeengoingnowhereslowlyforyears:itishalfwaythroughtheANC’sself-imposeddeadlineofimplementinguniversalhealthcareby2025
andhaspreciouslittletoshowforit.
"TheTreasuryhasdugintotheNHIindirectgrant
towardsmeetingPresidentCyrilRamaphosa’s
commitmenttofill2200
criticalpostsandbuyextrabedsandlinen,
becausesixmonthsintothefiscalyearthe
departmenthasspentjust10.4%oftheallocated
funds.
“Worsestill,notacenthadbeenspentonpriority
healthprogrammes,suchasthoseformental
andschoolhealth.
“Tohiscredit,Ramaphosahasrecognizedthe
crisis.HehasconvenedsummitsonNHIand
healthcareandappointedformerhealthdirector-
generalOliveShisanaashisspecialadviser.
"Buthenowneedstoact.Hecoulddofarworse
thanditchtherhetoriconNHIandfixwhatSA
alreadyhas:anenormouspublichealthsystem
ofdubiousqualityandapoorlyregulatedprivate
healthcaresystem.Ifbothpartsworkedasthey
should,withpropergovernmentstewardshipand
oversight,SAwouldindeedbewellonthewayto
universalhealthcare.”
Readmoreintheattachment:NHIlimpsalongtooslowly
ViewonGovernment
RegulatorprobesGEMSandDiscovery
TheCouncilforMedicalSchemes(CMS)isprobingSA’stwo
biggestmedicalschemes-DiscoveryHealthMedicalScheme
andtheGovernmentEmployees’MedicalScheme(GEMS)-
followingallegationsthattheyarenotpayingtheirmembers’
claimsinfullforprescribedminimumbenefits(PMBs).
TheinspectionofDHMSanditsadministrator,DiscoveryHealth,
followsallegationsthatmembers’claimswerenotbeingpaidin
full.
Thecouncilhasalsoreceivedacomplaintfromapharmacy
allegingitwasforcedtosignanacknowledgementofdebtin
ordertohaveitsclaimspaid.
DHMSisSA’sbiggestopenmedicalschemewith2.75-m
beneficiariesin2017,accordingtothecouncil’s2017-2018
annualreport.
GEM’sadministrator,MetropolitanHealth,isalsounderthe
spotlight,duetoasharpincreaseinconsumers’complaintsin
2017andallegationsthatitwasnotpayingPMBclaimsinfull.
Governmenthasrecentlyproposedthatalltheschemesthat
currentlycaterforstateemployeesbemergedwithGEMSasit
implementstheNHI.
Investigationswerealsounderwayintotwosmalleropenschemes,ResolutionHealthandBonitasMedicalFund.
SARSonmedicalclaims
TheSouthAfricanRevenue
Service(SARS)saystherehas
beennopolicychangewith
regardstotherisktreatmentof
medicalexpenseclaims.Some
taxpractitionershaverecently
beencaughtoff-guardafter
medicalexpenseclaimsthat
werenotpaidbyataxpayer’s
medicalschemewere
disallowed.
Inthepast,SARSgenerally
allowedamedicaltaxcreditfor
legitimateout-of-pocket
expensesonsubmissionofthe
taxcertificate,butthisyear
sometaxpractitionershave
advisedthatthecreditwasonly
allowediftaxpayersalso
submittedtherelevantinvoices
andreceiptsrelatedtothe
amountreflectedontheir
medicaltaxcertificate.
Thisisofparticularconcernfor
somepensionersandtaxpayers
withdisabilities.
FinancialView
SA'sthreelargesthospitalgroupsbattleabroadStringentregulations,hubrisandanunderestimationofadifficultmarket,alongwithalanguage
barrierinonecase,havecombinedtomakeatoughyearforSA’sthreelargesthospitalgroups’
adventuresoutsidetheirhomemarketandinthedevelopedclimesofplacessuchasSwitzerland,
wrotePenelopeMashegoinBusinessTimes,28October2018.mitsLondonbasewasperhapsthebiggestexampleoffailure.TheresultsfromhospitalgroupsMediclinic,NetcareandLifeHealthcare
showthattheyarefacingsimilarpressuresintryingtoestablishthemselvesoutsideSA.
Thegroups“clearlyunderestimated”thepressuretheyfacedinthedevelopedmarketsthey
investedin,saidthedeputyCEOofinvestmentcompanySentioCapitalManagement,
RayhaanJoosub.
NesanNair,aseniorportfoliomanageratSasfin,saidthatinadditiontoregulatoryfactors,the
proliferationofdayclinicsmeantthatpatientswerespendinglesstimeinhospitalsand
procedureswerebecomingcheaper,thushurtingrevenuegrowthforthehospitalgroups.
Dis-Chemwantstoopenmorenewstores
PharmacychainDis-Chemplanstomaintainits
expansionpaceofmorethanonestoreamonth.
Duringthefirsthalfofits2019financialyear,the
chaingrewbysevenstores,whichaddedR155-
mtorevenue,helpingitsoverallinterimrevenue
grow9.4%toR10.5-bn.Dis-Chemended
Augustwith136stores;18morethanattheend
ofthefirsthalfofits2018financialyear.
Aspen'sR3.4-bnoutlaytopsSA’spharmaceuticals
AspenPharmacarewillmakeSA’s“single
biggestpharmaceuticalinvestment”whenit
poursanotherR3.4-bnintoitsfactoryinPort
Elizabeth.
Thefundswillbefortheproductionofsterile
anaesthetics-“aniche,high-techmanufacturing
capabilitythatpresentsbothdomesticandexport
opportunities”,saidAspenseniorexecutive,
StavrosNicolaou,atSA’sinauguralinvestment
conference.
PharmaceuticalView
Pharmacistslividat'irregular'election
Drugfirmsmustfight'superbugs'
Agroupofpharmacistsareclaimingthe
electionsoftheirregulatorycouncilwere
irregular.TheIndependentElectoral
Commission(IEC)approvedtheelectionsbut
disgruntledpharmacistssentalettertoHealth
MinisterAaronMotsoaleditocomplain.The
groupaskedtheMinistertoensuretheoutgoing
pharmacycouncildoesnotaccepttheelection
results.TheninewinnersnominatedtotheSA
PharmacyCouncilarewhite,but46ofthe72
nomineeswereIndian,black,orcoloured.Those
questioningtheelectionresultssaytheraceof
thewinnersisfurtherevidenceofanirregular
election.
Eachyearabout700000peoplearoundthe
worlddiefromdrug-resistantstrainsofcommon
diseases.
Thisfigurecouldriseto10-mby2050ifthe
problemisnottackledhead-on,accordingtoa
reviewbyGoldmanSachschiefeconomistJim
O’Neill.
One-thirdofthosefuturedeathswouldbeduetotuberculosis(TB).
ThereislimiteddataonSA,butthestudies
conductedtodatehavefoundveryhighratesof
antibioticresistance.
SpecialNews
PresidentialHealthCompacttocommitallstakeholdersDescribedasapointofnoreturnforthecountry’shealthsystem,thetwo-dayPresidentialHealth
Summithasresolvedtocomeupwithasocialcompactthatwillcommitallstakeholdersinboththe
privateandpublicsectortosolvingthecountry’sdirehealthcrisisandimplementthesolutions
reachedatthehistoriceventasamatterofurgency.
Bringingtogethermorethan500representativesfromacrosstheboardofhealthcaredelivery,the
summitofferedforthefirsttimeaplatformforallstakeholderstodiscussopenlyandwithoutfearthe
problemsexperiencedinboththeprivateandpublicsector,andoffersolutionsinabidtobuildone
unifiedhealthsystemasthecountrymovestowardstheimplementationofuniversalhealthcoverage
throughtheimplementationofNHI.
Button
ViewonMedicalSchemes
Low-costmedicalplansnowlostinlegallimbo
"Discovery'sPrimaryCareplansandAgility
InsuranceAdministratorsareillegallydoingthe
businessofamedicalscheme"reportedSunday
Times,28October.
Discovery'splancovers30,000employeeswho
previouslydidnothavehealthcarecover.
Benefitsdiffergreatlybutsuchproductsstart
fromaboutR160amonth,withmanyaround
R400toR500amonth.
Primaryhealthcareplansnowneedtoregister
asschemeswithanexemptionfromproviding
theexpensiveprescribedminimumbenefits
(PMBs).Demarcationregulationsunderthe
insuranceactscameintoeffectinAprillastyear,
buttheCMSagreedthatinsurers'primaryplans
couldapplyforexemptionfromtheMedical
SchemesActwhileitdevelopedastandardised,
low-costmedicalschemeoptionfocusedon
primaryhealthcare.
Buttheactingregistrarformedicalschemes,Dr
SiphoKabane,toldarecentpressbriefingonthe
council'sannualreportthatthelow-costmedical
schemeoptionwouldnotbereadyfor
implementationbyMarchnextyear,asexpected.
Onlyadraftfordiscussionwouldbereadyby
thatdate.
Readmoreintheattachment:Medicalplansinlimbo
MedicalschemespaidoutR160,6-bnduring2017
AccordingtothelatestCMSreport,medical
schemeswereinarelativelystrongpositionat
theendof2017,withtheirclaimsratiodownto
88.7%from92.1%in2016.
OverallmedicalschemesspentR160.6-bnon
healthcarebenefitsin2017,up6.04%fromthe
R151.2-bnspentin2016.Hospitalexpenditure
amountedtoR59-bnor36.8%.Specialistssuch
asanaesthetists,medicalspecialists,pathology
services,radiologyandsurgicalspecialistswere
paid23.9%oftotalhealthcarebenefits
amountingtoR38.5-bn.
Membersofmedicalschemespaidanextra
R31.8-bninout-of-pocketexpensesforprivate
healthservices;up7%fromthepreviousyear.
Brokercostsincreasedby9.6%toR2.2-bnin
2017.
SpecctramedandResolutionHealthmergeSpectraMedicalSchemeandResolutionHealth
MedicalSchemehavemergedtoformHealth
SquaredMedicalScheme,asfrom1January
2019.
HealthSquaredwillbeadministeredbyAgility
Health,whichiscurrentlythemanagedcare
providerandadministratorforbothSpectramed
andResolutionHealth.
SpecialNotices
Equipmentforsale
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