Dear Editor,
GPs Receive Only 3–4% Tariff Increase Despite 10% Rise in Medical Scheme Contributions – UFFP Calls for Transparency and Fair Funding of Primary Care.
The Unity Forum of Family Practitioners (UFFP) is calling for greater transparency in the health funding environment, after South Africa’s major medical schemes announced contribution increases of around 10%, while general practitioners (GPs) are receiving only 3–4% tariff increases for 2025.
This translates to less than R20 extra for a standard GP consultation.
UFFP says the public deserves clarity on where their contributions are going.
There is a public perception that when medical aid contributions increase by 10%, doctors receive the same increase.
We do not.
Across the board, GPs are receiving a tariff increase of only 3–4%, and that includes VAT.
The real increase to a GP practice is closer to 2.6–3.5%.
Primary care underfunded: GPs receive less than 5 cents of every medical scheme rand.
According to the Council for Medical Schemes (CMS), GPs receive only 4.5–5% of every rand spent by medical schemes.
In comparison:
- Hospitals absorb approximately 36–40%
- Specialists approximately 20–25%
- Managed care and administration continue to rise faster than GP tariffs.
- The GP share of the medical scheme rand has been shrinking for years.
We are the frontline of care, diagnosing early disease, preventing complications, and reducing unnecessary hospital visits — yet we receive less than five cents of every rand.
A 3–4% increase does not cover basic practice costs.
The cost of running a medical practice has risen far above 3–4%.
In 2024–2025, typical increases include:
- Staff salaries: 6–7%
- Medical consumables: 8–12%
- Rent and municipal charges: 9–12%
- IT systems, EHR, and telecoms: 8–15%
- Security and insurance: 7–10%
- Electricity increases: 12%+
There is no business in South Africa that can remain viable on a 3% income increase while expenses rise between 8% and 12%.
GP practices are no different.
This gap directly threatens access to affordable primary care.
VAT further erodes the increase
The 3–4% increase includes VAT.
After VAT is deducted:
- A 4% increase becomes ~3.48% to the practice.
- A 3% increase becomes ~2.61%
These increases are not even in line with CPI, let alone medical inflation.
Impact on patients: Underfunding primary care drives up overall healthcare costs
When GP practices are financially strained, the consequences are significant:
- More doctors shift to cash-based practice.
- Fewer young doctors enter family medicine.
- Continuity of care breaks down.
- Patients turn to emergency departments for minor conditions.
- Hospitalisations and downstream specialist costs increase.
UFFP warns
Underfunding GPs is the most expensive mistake any healthcare system can make. When primary care collapses, costs escalate across the entire system — and patients pay the price.
UFFP’s call to action
UFFP urges medical schemes, regulators, and policymakers to:
- Acknowledge that GP tariff increases are far below inflation.
- Increase the proportion of the medical aid rand allocated to primary care.
- Ensure transparent public communication about how member contributions are distributed.
- Recognise the pivotal cost-saving role of GPs in preventing hospitalisation and long-term complications.
- Commit to a multi-year strategy to strengthen primary care funding.
South Africans are paying significantly more for medical cover, but their GPs — who keep them healthy and out of hospital — are asked to do more with less.
This is not sustainable and ultimately harms patients.
Dr. Angelique Coetzee
Vice-Chair, Unity Forum of Family Practitioners (UFFP)
