By: CompCare Wellness Medical Scheme and Selfmed Medical Scheme
New scheme will be one of top ten in the country
Two of South Africa’s most enduring medical schemes, CompCare Wellness Medical Scheme and Selfmed, have been given the green light to amalgamate by the Council for Medical Schemes (CMS).
This comes after the members of the two schemes voted in favour of the amalgamation and the establishment of a new scheme, which will be known as CompCare Wellness Medical Scheme.
Commenting on the announcement, Josua Joubert, Chief Executive and Principal Officer of CompCare, said that the amalgamation was proposed in order to strengthen the two schemes and to ensure ongoing value for members.
“Together, the two schemes will become one of South Africa’s top ten medical schemes, offering a highly competitive product range and a customer focused service offering,” adds Joubert.
“The South African private healthcare industry has undergone considerable change in recent years. One such noteworthy trend is the consolidation of the medical schemes industry. This development, which is supported and endorsed by the CMS, is aligned to the white paper on National Health Insurance.”
“Among the key reasons for the consolidation of medical schemes is the benefit it holds for medical scheme members such as greater influence, improved sustainability and bargaining power, which protects members as it improves cost efficiencies. In addition, a consolidated scheme such as this will be able to achieve a broader national footprint.”
According to Christo Becker, Principal Officer of Selfmed Medical Scheme, the proposed amalgamation of the schemes, with Selfmed amalgamating into CompCare as from 1 September 2019, was strategically planned and carefully considered.
“The two schemes complement each other and can together provide a broader, member-centric offering to fulfil member needs. It is worth noting that the amalgamation places the new combined scheme in a very strong financial position with one of the highest reserve levels of open medical schemes in the industry,” noted Becker.
“The combined balance sheet and increased membership size will unlock efficiencies and economies of scale that are likely to have considerable benefits for members. The amalgamation of the two schemes will result in a combined scheme with reserves significantly above the regulated 25%.”
“Independent actuaries performed a thorough amalgamation analysis, which indicated that the new scheme would be able to keep annual contribution increases to a minimum, a most beneficial outcome for members,” notes Joubert.
Joubert said that given its strengthened financial position the new scheme would be substantially more sustainable. In addition, members can look forward to a wide product offering to choose from and significantly enhanced value for money.
“With its outstanding track record of more than 40-years, CompCare is one of the oldest and most enduring medical schemes in the country. CompCare’s success over the years is attributed to the strong emphasis it places on meeting the needs of members.”
“We listen to our members in order to give them exactly what they need and believe that affordability, choice and security are non-negotiable,” concludes Joubert.