Damian McHugh, Head of Marketing and Sales for Momentum Health.
Ranked the third largest open medical scheme at the end of 2012, Momentum Health is fast becoming the medical scheme of choice in South Africa - with a growing membership base, positive solvency levels and solid financial results.
The Scheme bolstered its operating surplus to R134 million and, after adding investment income, achieved a net surplus of R174 million in 2012 (up from R85 million operating- and R118 million net surplus in 2011).
As medical schemes are non-profit entities, these surplus funds have all been added to member reserves. This resulted in Momentum Health’s solvency level growing to a comfortable 28.6% - now well above the 25% legislative solvency requirement set by the Council for Medical Schemes.
The Scheme’s continuously improving results have once again been reaffirmed by the Global Credit Rating Company (GCR), an independent risk rating group, which has upgraded Momentum Health to an AA- rating for 2012. This rating recognizes the Scheme’s very high claims paying ability, sustainable product design and financial strategy.
“Our success is underpinned by a growth strategy that focuses on providing the right mix of flexible healthcare products and strong service levels to an astute consumer in today’s market,” says Damian McHugh, Head of Marketing and Sales for Momentum Health.
In 2012, the Scheme also grew by 8% to cover 100 936 families, with an average open scheme industry outperformance of 9% over the past five years.
Momentum Health boasts the youngest principal member average age amongst the top 10 open medical schemes in South Africa, sitting at a healthy average age of 42.7 years. “A medical scheme’s average member age is one of the best indicators of future claims costs, and if that’s getting older it means that the scheme’s claims costs are going to increase in real terms. It is estimated that claims increase by 2-3% with every year that membership gets older,” says McHugh
The Scheme has also kept its total non-healthcare costs to a low of 14.5%, all whilst still maintaining high levels of service and care for its members.
“By utilising our innovative product choices, Momentum Health has not only enabled greater wealth for the Scheme, but also ensured healthy ways for members to improve both their own health and wellness,” says McHugh. “The increasingly popular HealthReturns offering and the amount of R150 million held in HealthSaver accounts at end 2012, clearly indicates that.”
“Affordable healthcare cover that delivers meaningful value for members has become an essential part of a scheme’s sustainability. For us, it’s not just about providing medical aid. We believe in offering innovative healthcare solutions that meet the individual needs of all our members,” says McHugh. With Momentum Health, your health truly is your wealth.
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