By: Nghiinomenwa-vali Hangala
From 2023 to 2025, private medical aid holders have contributed around N$18 billion. Out of this, N$15.6 billion was spent on private healthcare claims.
This is, however, to benefit fewer than 230,000 beneficiaries, less than 10% of the country’s total population.
This healthcare expenditure data is found in the Namfisa annual report for the financial year 2025/26, which documents how non-banking financial institutions have performed, including medical aids.
According to Namfisa, since 2023, the medical claims to cover health expenditure have been over N$5 billion every year.
Around N$900 million away from what is contributed, except in 2023, when the gap was more narrow.
The data shows that, on an annual basis, since 2023, health care per individual cost between N$23,000 and N$ 25,000 as of the end of March 2026.
This mirrors the cost of healthcare and likely explaining the government allocation to public health, which takes up the biggest chunk of the country national budget.
Healthcare expenditure paid is the sum of the benefits paid from the risk pool of medical aid funds.
During the year 2025, the healthcare expenditure amounted to N$5.4 billion, which is higher than the N$5.1 billion healthcare expenditure reported for the previous year, the report read.
The increase observed during the year under review was due to a combination of higher utilisation by beneficiaries and an increase in healthcare services and products, medical aids told Namfisa.
They added that the medical aid funds industry utilises cost containment measures to manage the growth in healthcare expenditure, the effectiveness of which is continually monitored.
“The average healthcare expenditure amount per beneficiary per annum (PBPA) reported for 2025 was N$24,261, which is 4.6% higher than in 2024.
As experienced in previous years (2024), hospitals, pharmacies, medical specialists, and general practitioners comprised the bulk of healthcare expenditure in 2025.
Claims associated with these four groups accounted for 70.3% or N$3.8 billion of the total benefits paid in 2025/26.
Hospital claims were the highest at N$1.9 billion, followed by pharmacies (medicines dispensed) at N$821.1 million.
Specialist claims paid amounted to N$594.6 million, and general practitioners amounted to N$509.6 million.
During 2025, healthcare expenditure increased at a rate higher than the Namibia Consumer Price Index (NCPI), contrary to 2024 but in line with the trend in 2021 to 2023, Namfisa noted.
Adding that healthcare expenditure has steadily increased over the past five years.
The medical aid funds’ non-healthcare expenditure increased by 8.2% to N$606.7 million in 2025, driven mainly by administration, managed care, operational costs, and consultancy fees.
Administration costs remained the largest component, rising by 6.7% to N$416.9 million due to inflation-linked fee adjustments and higher member activity, and accounted for 68.7% of the total non-healthcare expenditure.
Overall, both gross contributions and non-healthcare costs grew faster than the NCPI, indicating continued cost pressures in the medical aid fund sector, Namfisa noted.
erastus@thevillager.com.na
