On Tuesday, the 10th of September 2019, Sizwe Medical Fund (‘Sizwe’) launched their benefit and contribution changes for 2020. A weighted average contribution increase of 10.6% was announced.
Higher than the expected medical inflation, was one of the reasons highlighted for the increase. Sizwe’s reserves have declined from 54.9% to 39% over the past two years due to nominal membership growth, higher claims ratio and the scheme using its reserves to subsidise contribution increases. While the reserves have declined over the past two years, they are still well above the statutory requirement of 25%.
We have analysed the benefit changes that were introduced by the scheme and we have compiled the below key highlights for your ease of reference. Please look out for the upcoming member information sessions where we will unpack the detail and the impact of these changes per plan option. Our consultants will also be available to assist you with appropriate plan selection.