‘Zimbabweans prioritising funeral cover over health insurance’

HEALTH experts have raised concerns that Zimbabweans are more likely to invest in funeral cover than health insurance, leaving the Government with the burden of catering to the health needs of about 90 percent of the population.

According to the Association of Healthcare Funders of Zimbabwe (AHFoZ), only 1,63 million Zimbabweans, representing less than eleven percent of the population, have medical aid cover.

Speaking at the recent AHFoZ 2024 annual all-stakeholders health conference in Victoria Falls, AHFoZ chief executive officer, Mrs Shylet Sanyanga, urged citizens to prioritise health insurance.

Without giving statistics, she said almost every Zimbabwean has a funeral cover, yet they don’t have health insurance.

“We need a change in culture and priorities so that people invest in health insurance instead of focusing solely on funeral cover,” said Ms Sanyanga.

Delegates follow proceedings during the Association of Healthcare Funders of Zimbabwe conference in Victoria Falls recently

She identified economic hardships, high medical fees, inflation, and unemployment as key reasons for the reluctance to secure medical aid.

Mrs Sanyanga stressed that various medical aid societies offer products for different budgets, yet many citizens still prioritise funeral expenses over their health.

“In Zimbabwe, there are different medical aid societies and different products to suit different budgets. While we focus on burial, other countries are trying to respond to the problem of longevity,” she said.

She noted that 36 medical aid societies are registered with AHFoZ, collectively covering only 10,8 percent of the population.

Mrs Sanyanga said there is a need for collaborative efforts to convince the population to self-insure. In 2023, AHFoZ members paid a total of ZWL$103 billion and US$25 million in healthcare claims, compared to ZWL$17 billion and US$11 million in 2022.

“AHFoZ members collectively cover 1,63 million lives which translates to about 10,8 percent of the population. Medical aid societies account for 80 percent of healthcare service providers’ income,” said Mrs Sanyanga.

The largest portion of claims went towards medication, accounting for 21 percent, followed by hospital fees (20 percent) and services by general practitioners (9,8 percent). Mrs Sanyanga said the insured population mainly consists of the elite, given the preference for expensive private healthcare services.

In response to healthcare fraud, waste and abuse, Mrs Sanyanga revealed that AHFoZ had partnered with law enforcement agencies, including the police and the Allied Health Practitioners Council of Zimbabwe. These collaborations led to the recovery of US$451 000 and ZWL$641 million in fraudulent claims in 2023.

She said efforts are being made to collaborate with more stakeholders such as the Zimbabwe Anti-Corruption Commission (ZACC), the National Prosecuting Authority, and the Reserve Bank of Zimbabwe (RBZ)’s Financial Intelligence Unit.

Reserve Bank of Zimbabwe

AHFoZ is upgrading a risk management portal to facilitate effective reporting of fraud, waste and abuse in real-time.

Mrs Sanyanga urged member societies to provide holistic care involving effective prevention, treatment and rehabilitation to win the trust of citizens.

She called for international best practices whereby 80 percent of contributions should go to healthcare claims, with 20 percent going to non-healthcare costs such as Statutory Reserves (5 percent) and 15 percent to administration.

She urged members to use actuarial expertise for determining medical aid subscriptions to reduce shortfalls.

Health economist, Professor Albert Makochekanwa, said 90 percent of Zimbabweans perceive medical aid as a luxury, opting for alternative health solutions due to low incomes.

Many delegates at the conference agreed that funeral service providers had delivered better services than medical aid providers, which has contributed to a lack of confidence in health insurance.

Health and Child Care Minister, Dr Douglas Mombeshora, underlined the cultural aspect of the issue, saying: “People have more respect for the dead than the living. We need to talk more and convince our people that a dead person is of no use in health terms.”

The conference, themed ‘Zooming in on Health Outcomes: Making the Main Thing the Main Thing’, brought together health professionals and stakeholders to discuss ways to improve health insurance coverage and outcomes in Zimbabwe. – chronciles