Med aid trustees pocket millions

(File)
(File)
Shutterstock [http://www.shutterstock.com]

Johannesburg - A large chunk of medical aid contributions is spent on non-healthcare costs, including substantial payments to trustees, the Business Times reports.

The Council for Medical Schemes, which polices the 87 medical schemes registered in South Africa, said the public should scrutinise the salaries of principal officers and trustees, who are meant to ensure members get treated fairly.

In a report, the council found the top-earning principal officer was Anton Rijnen, the former head of Medihelp, who received R6m last year, up 80% from the year before.

Bestmed's Dries la Grange was paid R5.6m and Discovery Health's Milton Streak got R5.4m last year, a 34% salary hike in a year, the paper reported on Sunday.

Run properly

Fourteen trustees of the Government Employees Medical Scheme were paid an average of R568 000 each.

The 10 trustees of Bonitas made an average of R373 000. The trustees do part time work to ensure the scheme is run properly.

In all, 8.8m South Africans paid R129.8bn in medical aid contributions last year, 10.4% more than the previous year.

Medical aids paid R112.9bn last year, 8.9% more than the previous year. A large portion of this did not go to hospitals or doctors, but to brokers and administrators and to cover non-healthcare costs.

The amount paid to hospitals last year dropped 0.8% to R39.4bn.

ZAR/USD
17.32
(+0.09)
ZAR/GBP
22.73
(-0.14)
ZAR/EUR
20.56
(-0.29)
ZAR/AUD
12.46
(-0.12)
ZAR/JPY
0.16
(+0.11)
Gold
2037.12
(+0.38)
Silver
26.85
(+2.55)
Platinum
964.00
(+3.42)
Brent Crude
44.34
(+0.63)
Palladium
2168.00
(+1.87)
All Share
57629.36
(+2.45)
Top 40
53279.30
(+2.56)
Financial 15
9928.97
(+0.51)
Industrial 25
76162.43
(+1.63)
Resource 10
59790.27
(+4.30)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 871 votes
It depends on how the funds are used.
74% - 5769 votes
No. We should have gotten the loan elsewhere.
15% - 1154 votes
Vote