WHY THE NEED FOR A RISK EQUALISATION FUND?

It is understood that HIV/AIDS has an impact on everyone in Namibia. HIV/AIDS is the largest cost driver for chronic illness conditions and the experience in Namibia is that:

1. Medical schemes offer limited annual health care benefits for
    HIV/AIDS related chronic conditions resulting in depleted medical aid
    funds;

2. As a result, beneficiaries either have to stop treatment because they
    can not afford to pay out-of pocket; or private companies have to
    fund the shortfall;

4. Limited benefits within funds prevent the successful management of
    treatment on an uninterrupted basis; and

5. The small membership base of health care funds makes the
    treatment of HIV/AIDS related chronic conditions very expensive and
    unsustainable.