Masm fee hike irks consumers

Consumers Association of Malawi (Cama) has expressed frustration with the hike in Medical Aid Society of Malawi (Masm) subscriptions by an average of 19 percent effective next month.

In an interview yesterday, Cama executive director John Kapito described the adjustment as “unfair, absurd and unheard of”.

He said: “Just recently, Masm increased its fees and the same reasons were given. Already, we have a large number of people not on health insurance. Why would this be coming today when we are seeing improved economic fundamentals? What we are seeing now is people trying to transfer their failures in managing resources to consumers.”

Masm chief executive officer Sydney Chikoti said yesterday that the adjustments were supposed to be effected in July but could not give further details as he was reportedly on the road.

In a letter dated May 30 2018, addressed to all member firms and individual members, Chikoti said Masm saw a substantial increase last year in the number and amount of paid claims across all benefit lines which continued into the current year.

This, he said, has forced the society to accrue arrears in settling claims with its service providers, which could ultimately lead to compromised services and a huge deficit carried into the current year.

He said: “In consideration of the above changes, the board also approved that benefit limits be reviewed accordingly so that members have ease of access to services. The detailed revised benefit table will be communicated separately.”

The adjustment will see VIP members contributing K28 000 from K21 000, executive members will have to part with K14 000 from K11 250, while Econo-plan scheme members will be paying K4 000 from K3 750.n