Medical aid funds post N$1.7 billion in surplus
Medical aid funds in Namibia collected N$6.1 billion in contributions and spent N$5.1 billion on healthcare during the 2024–2025 financial year — yet still recorded a surplus of more than N$1 billion, according to the Namibia Financial Institutions Supervisory Authority (Namfisa).
The figures have sparked criticism from the Namibian Association for Private Health Facilities (NAPH) and the Namibian Private Practitioners Forum (NPPF), who argue that medical aid funds cannot blame healthcare providers for rising costs while accumulating such large profits.
“The surpluses recorded by medical aid funds in 2024 and 2025 show that the problem is not unsustainable service provider costs, but the lack of adequate regulation,” said NPPF representative Dr Jürgen Hoffmann.
NAPH president Dr Akutu Munyika added that healthcare spending should be directed towards patient care, not surplus accumulation.
“Blaming frontline service providers who deal directly with patients, while medical aid funds retain ever-increasing surpluses, misleads the public and undermines trust in the healthcare system,” he said.
Munyika said it was unfair to label doctors, specialists, and hospitals as “cost drivers” when they operate under NAMAF (Namibian Association of Medical Aid Funds) guidelines, which often fail to reflect clinical realities.
“The private sector is not the problem – it is part of the solution,” he said.
Hospitals and pharmacies top expenditure list
Namfisa’s latest annual report shows that hospitals, pharmacies, specialists, and doctors were the main expenditure items, together totalling N$5.1 billion.
Hospital claims were the highest at N$1.8 billion, followed by pharmacies (N$802 million), specialists (N$563.2 million), and doctors (N$473.1 million).
Gross contributions increased by 11.8% to N$6.1 billion in 2024, while claims grew at a lower average of 5.9% over the past five years.
Open medical aid funds posted a net surplus of N$575.8 million, and closed funds a surplus of N$55.1 million.
The industry’s total assets jumped by 33.4% to N$2.8 billion by the end of 2024, while liabilities reached N$729.6 million.
The solvency ratio for open funds improved to 32.1%, up from 24.3% the previous year.
Calls for reform and fair tariffs
Hoffmann and Munyika have called on the ministries of Health and Social Services and Finance to acknowledge that persistent surpluses contradict claims of unaffordable healthcare costs.
They also urged policymakers to stop “mischaracterising frontline healthcare workers” and instead implement ethical tariffs that reflect the real cost of care.
“We need statutory reform, ethical tariffs, and a Medical Control Council to restore fairness and transparency in the financing of healthcare,” Hofmann said.
He added: “We are open to constructive dialogue, but continued regulatory failure cannot be allowed to undermine the integrity of healthcare professionals or the rights of patients to ethical, accessible, and sustainable care.” - [email protected]
The figures have sparked criticism from the Namibian Association for Private Health Facilities (NAPH) and the Namibian Private Practitioners Forum (NPPF), who argue that medical aid funds cannot blame healthcare providers for rising costs while accumulating such large profits.
“The surpluses recorded by medical aid funds in 2024 and 2025 show that the problem is not unsustainable service provider costs, but the lack of adequate regulation,” said NPPF representative Dr Jürgen Hoffmann.
NAPH president Dr Akutu Munyika added that healthcare spending should be directed towards patient care, not surplus accumulation.
“Blaming frontline service providers who deal directly with patients, while medical aid funds retain ever-increasing surpluses, misleads the public and undermines trust in the healthcare system,” he said.
Munyika said it was unfair to label doctors, specialists, and hospitals as “cost drivers” when they operate under NAMAF (Namibian Association of Medical Aid Funds) guidelines, which often fail to reflect clinical realities.
“The private sector is not the problem – it is part of the solution,” he said.
Hospitals and pharmacies top expenditure list
Namfisa’s latest annual report shows that hospitals, pharmacies, specialists, and doctors were the main expenditure items, together totalling N$5.1 billion.
Hospital claims were the highest at N$1.8 billion, followed by pharmacies (N$802 million), specialists (N$563.2 million), and doctors (N$473.1 million).
Gross contributions increased by 11.8% to N$6.1 billion in 2024, while claims grew at a lower average of 5.9% over the past five years.
Open medical aid funds posted a net surplus of N$575.8 million, and closed funds a surplus of N$55.1 million.
The industry’s total assets jumped by 33.4% to N$2.8 billion by the end of 2024, while liabilities reached N$729.6 million.
The solvency ratio for open funds improved to 32.1%, up from 24.3% the previous year.
Calls for reform and fair tariffs
Hoffmann and Munyika have called on the ministries of Health and Social Services and Finance to acknowledge that persistent surpluses contradict claims of unaffordable healthcare costs.
They also urged policymakers to stop “mischaracterising frontline healthcare workers” and instead implement ethical tariffs that reflect the real cost of care.
“We need statutory reform, ethical tariffs, and a Medical Control Council to restore fairness and transparency in the financing of healthcare,” Hofmann said.
He added: “We are open to constructive dialogue, but continued regulatory failure cannot be allowed to undermine the integrity of healthcare professionals or the rights of patients to ethical, accessible, and sustainable care.” - [email protected]
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