'VAT to push up medical insurance costs'

FREDERICK KEBADIRETSE
Staff Writer | Monday March 8, 2010 00:00

 

Speaking at the third annual breakfast seminar of Pula Medical Aid Fund at the Gaborone Sun on Friday, Ebineng said the VAT increase could result in a review of subscriptions that did not include VAT so far.

'With the increase in VAT, the financial position of the Fund is going to be depressed,' he said. 'The income must always be more than the outcome in order to cover for the benefits and administration.'

He noted that in addition to covering VAT, the review of subscriptions should also include the introduction of more facilities and services such as are available at the newly opened Bokamoso Private Hospital.

'With easy accessibility to services and facilities, total costs of getting a particular outcome may reduce, (while) travel costs and other associated costs from referring patients outside the country have been cut significantly since the opening of Bokamoso Hospital.'

On a related issue, Ebineng said there would be a yearly review of the subscription rates and adjustments would be made when necessary. Subscribers will go to a facility or practitioner of their choice.

The Chairman of Pula board of trustees Peter Stevenson said the Fund still had challenges of growing and retaining membership and maintaining a financially healthy and sustainable fund. He expressed the hope that through a corporate strategic development devised in 2009, they would tackle the problems sucessfully.

The first seminar was held in 2008 with the objective of updating stakeholders on the operational and financial performance of the Fund. The seminar also provides an opportunity for clients to give the Fund timely feedback.It also introduces employer groups to the benefits of the Fund.