The cost of private healthcare in SA has risen to levels that are now unaffordable for many citizens, health minister Dr Aaron Motsoaledi has revealed.

Speaking at the Health Market Inquiry briefing today, Motsoaledi said no minister of health does not want affordable healthcare for his people. However, the unaffordability of private healthcare has now led to widespread concerns about its impact on various aspects of the economy, particularly on medical price inflation and, by extension, the consumer price index.

“It is generally agreed that the cost of private healthcare is now beyond the reach of many people in our country. We would be right to assert that it has become an uncontrollable expenditure. Needless to say, this affects every aspect of South African life,” he said.

According to Motsoaledi, one of the direct consequences of rising medical costs was its effect on medical aid premiums. These premiums are a crucial factor in salary negotiations, especially between the government and state employees, he said.

“The high cost of medical aid forces the government to factor in medical price inflation when negotiating wage adjustments, which has a ripple effect on the overall economy.

“The high cost of private healthcare is not merely an issue of affordability for individuals, it has far-reaching implications for the entire economy.

“Addressing this issue will require a balanced approach that considers the interests of both healthcare providers and the broader population,” the minister said.

The Competition Commission tried to balance the healthcare prices by giving patients the task of doing personal negotiations with the doctors. However, that was not even a success, said Motsoaledi.

“You don't expect a patient to go to their doctor, sick and start saying 'I'm negotiating fees'. They won't even have anywhere to start. So, this was one mistake committed by the Competition Commission in trying to resolve this problem. 

“I'm sure you are aware that this was a practice that was next to impossible, given the obvious power and knowledge imbalance and gap between a patient and his doctor,” said Motsoaledi. 

The purpose of the briefing was to provide progress made regarding the implementation of the recommendations of Health Market Inquiry into the private healthcare sector such as unregulated supply in the provision of services, lack of transparency in pricing, exclusive contracts and anticompetitive practices or barriers to entry for new providers.