Medshield makes positive strides in private sector, notes Global Credit Ratings

Global Credit Ratings (GCR) has for the fifth consecutive year awarded Medshield Medical Scheme an AA- rating, the second highest rating a medical scheme can achieve. GCR noted in particular Medshield’s strong financial results and the scheme’s positive strides towards growing private sector membership.

Medshield’s reserves and solvency levels have remained sound and are well above industry averages. The Scheme has consistently maintained healthy solvency levels and continues to display one of the highest solvency margins in the industry, at 52%. The Medical Schemes Act stipulates a minimum solvency ratio of 25%. The GCR report also noted Medshield’s sizeable investment portfolio as well as strong credit protection factors – more key components to ensuring a financially fit scheme that can pay member’s claims timeously.

Duduza Khosana, Medshield Medical Scheme’s Executive Principal Officer, comments, “Naturally the Board is pleased to be able to report these favourable findings to the Scheme’s stakeholders. Against the last year’s challenging backdrop of GEMS, an economic recession and rising healthcare costs, Medshield has weathered the storm exceedingly well.” She continues, “With some of the most competitive products on the market and also a track record that proves our credibility and staying power, this year’s GCR report is just further evidence of our strength.”

Medshield has embarked on a number of strategies over the last year or two, specifically targeting the private sector. These include successful marketing campaigns, enlarging the Scheme’s broker network and continuously supporting its existing broker and in-house sales force in terms of training. As a result, the Scheme’s substantial membership has been maintained at over 73, 000 principal members, with over 173, 000 lives covered – retaining its ranking as one of the largest schemes in the country.

Medshield’s overall financial performance reflects a conscientious endeavour to strike a careful balance between minimizing non-healthcare related costs while simultaneously ensuring healthcare products that provide the best value at the best price – no small feat in today’s volatile healthcare industry.