Key findings: Report-03-10-33 - Household expenditure on health in South Africa: Findings from the Income and expenditure Survey, 2023

KEY FINDINGS-HEALTH EXPENDITURE REPORT

Information on households’ health expenditure collected by the Income and Expenditure Survey highlights the following key findings:

 

Households in South Africa spent a total amount of R103,5 billion towards medical aid during the survey period. Only 14,1% of the population in South Africa was covered by medical aid, while 84% were not covered. The age group 20-24 years were the least covered by medical aid. Coverage by population group show that the black African population group aged 0-54 years recorded a higher medical aid coverage which decreases at older age groups (75-79 years). The white population group had the highest medical aid coverage among those aged 60+. Provincial distribution show that a higher medical aid coverage was recorded in Western Cape (23,8%), Gauteng (19,6%), Northern Cape (14,3%) and Free State (14,0%) while Limpopo (7,3%) and Mpumalanga (8,4%) were the least covered by medical aid.

 

Information on household contribution towards medical aid showed that even though male headed households were less covered by medical aid, they contributed twice as much as female headed households (R71,8 billion vs R31,7 billion). On average, male headed households contributed R27 662 compared to the contribution from female headed households (R20 875). The white population group contributed more to medical aid than other groups (R48,1 billion), followed by households from the black African population group (R40,4 billion). Even though black African households had second highest contribution towards medical than other population groups, their average contribution was the lowest than other population groups (R18 561).

 

Although households in urban settlements contributed more to medical aid than other settlements, their annual average towards medical aid was lower than households in farm settlement. Provincially, Gauteng recorded a higher contribution to medical aid (R36,1 billion) while Northern Cape contributed less than other provinces (R1,8 billion).

 

Households in South Africa spent an out-of-pocket amount of R31,5 billion on health, with an average of R1 481 per household (equivalent to 1% of the total household expenditure). The most used health services were in the categories of medicines and health products and on outpatient care services. Households in South Africa spent R11,2 billion on medicines (R5,0 billion with prescription and R4,5 billion without prescription). Am amount of R3,5 billion was also spent on assistive products for seeing and on outpatient curative and rehabilitative services (R3,2 billion).