Cape Town – The National Treasury has reiterated that medical claims were continuing to balloon in the country after they increased from R111.2 billion last year to R120.3bn this year.
But attempts were made to do away with the current system to claim lump sums for damages, as the system was fraught with problems.
This was after medical claims had increased over the years, with one province accounting for the bulk of the claims.
National Treasury said a new law was in the making to stop the lump sum payments to victims of road accidents, but instead use staggered payments and in-kind services to the claimants.
There have been complaints, with questions being raised against some legal representatives ripping off victims.
Treasury said the system was not sustainable as it stands and a review was needed.
Government is seeking statutory reform that would reduce state liability for medical claims through the State Liability Amendment Bill, which is being revised. The bill proposes making provision for in-kind services and periodic payments instead of the payment of private sector rates and large lump sum amounts.
Total claims increased from R111.2bn in 2019/20 to R120.3bn in 2020/21, with the Eastern Cape accounting for 32% of claims,” stated the Medium Term Budget Policy Statement.
The policy statement had identified the medical claims as one of the risks to the economy.
This has been an issue on the table for some time.
POLITICAL BUREAU