The Namibia Financial Institutions Supervisory Authority (NAMFISA) has warned medical aid schemes against increasing their average contribution above the percentage approved by the regulatory body.
According to a release by NAMFISA, the decision to increase violates Section 31 of the medical aid fund, which states that no change, cancellation, or addition to a registered medical aid funds rule will be valid unless approved by the Medical Aid Funds Registrar.
The announcement comes as the body imposed a temporary cap on some medical funds’ annual contribution increases, limiting it to a single-digit percentage, with a maximum increase of 9.99%, in response to the escalating challenges posed by rising medical aid contribution rates.
This comes as Renaissance Health Medical Aid sent its members a notice that it would continue with a planned increase of 13.25% this year despite the cap instituted by NAMFISA.
Approached for comment, Marketing Manager at Renaissance Health Roland Struwig said the medical aid fund has filed an appeal against the imposed cap and is presently awaiting the result of the appeal.
“In accordance with our earlier communications to the members of Renaissance Medical Aid, it is important to note that the existing arrangements and benefits will continue to be in effect until the conclusion of the appeal process,†he said.
Meanwhile, the Namibian Association for Medical Aid Funds (NAMAF) has refused to grant the Namibian Dental Association (NDA) a 10% tariff increase for the provision of dental services.
According to a release by the NDA, the cost of dental materials alone has risen more than 10% in the last year which constituted the increase, coupled with NAMAF’s failure to pass on those benefits to the medical aid members, despite being granted an increase by NAMFISA.
“Considering the current status quo, in terms of which dental services have zero percentage increase in tariffs from the medical aid funds as communicated by NAMAF on 28 November 2023, the NDA, after consultation with its members, has taken a collective decision to support its members in exercising their right to increase their fees and charges by way of co-payment, to all medical aid members, of up to 10%, commencing 01 January 2024 until such time as an agreement can be reached with NAMAF on a suitable tariff increase for all dental practitioners,†the release read.
