10.98% Average Risk Increase in Bestmed’s 2017 member contributions
Bestmed, the fourth largest open medical scheme in South Africa, announced its average gross contribution increase of 10.98% for 2017 at their broker launch presentation for the year ahead, held in major cities on 7th October 2016.
Dries la Grange, Chief Executive Officer of Bestmed explained that this year the increases of the product range is between 9.89 and 12.35%. "While the industry in general saw a far greater claims propensity than expected, Bestmed was slightly less affected. "We believe that our efficiency as member owned administrator with a huge focus on wellness, our approach to encourage better health outcomes for members identified with certain risk factors is starting to make a real difference" La Grange said in Johannesburg to approximately 400 brokers.
The private healthcare industry has been hit hard by the effects of economic uncertainties, a global phenomenon at this point. South Africa, in particular, is facing numerous challenges that included higher medical inflation, a significant rise in healthcare technologies; unstable currency and a high burden of non-communicable diseases that lead to a strain in the healthcare industry. Defensive medicine also seems to be on the rise. This refers to the practice of a diagnostic test or treatment that is not necessarily the most appropriate but is done to ensure that the diagnosis is confirmed by more than a one particular test to protect the provider in cases of legal liability.
“The Private Healthcare Funding Industry is making a significant contribution in providing quality healthcare to South Africans, and because Bestmed is a self-administered scheme, it is run by members for members. We have managed to maintain a solid solvency ratio that places us in good stead with reserves per member and this was achieved by growing our membership and not shrinking as most others open schemes did. Further to this, our self-administration service ensures that our members get the most out of their contributions in terms of benefits,” adds la Grange.
Chris Luyt, executive head of marketing and distribution at Bestmed says, “Contribution increases remain one of the most crucial announcements in the calendar of the medical aid industry. We believe that with Bestmed's very competitive increase, we are yet again well positioned to add value to employers and employees alike."
In addition, Bestmed revealed their new brand promise, “Personally Yours”during the launch. “We believe that this is the best representation of what ‘by members for members’ is about. It means that as a member of our medical scheme we will answer to you. Our only vested interest is in our members,” says Luyt.
Bestmed continues to prioritise the health of its members through their personalised and customer-centric services to all its members in line with ‘Personally Yours’.
