Bestmed: 8.59% Members risk contribution increase for 2015

Adding value through efficiency in difficult times.

Bestmed, one of the top five open medical schemes in South Africa, today announced its weighted average increase on gross contributions income at 8.59% for 2015, 0.11% less than what it was for the year 2014.

The Scheme announced the increase at its product launch on 26 September 2014, in Johannesburg, which was simultaneously streamed live to Cape Town, KZN, East London and Bloemfontein.

Announcing the increase, Dries la Grange, Bestmed’s Chief Executive Officer said that the Scheme’s increase per benefit option ranges from 6.14% to 10.84% on gross contributions income.

“Open schemes are faced with numerous challenges, and this period is critical for both members and the scheme itself. Some of these challenges are the demarcation regulation in the industry, the inflexible regulatory landscape, and the urgent need for regulatory reform.. Our increase this year and the changes we will implement in 2015 are an effort to add value through efficiency in difficult economic times,” says La Grange.

Real value for members

According to Bestmed’s Executive Head of Sales, Marketing and Distribution, Chris Luyt, the private healthcare industry needs a complete reform in terms of regulating the Prescribed Minimum Benefits (PMBs), a review of solvency calculation, risk equalisation and governance. “These factors, once addressed, will ensure affordability and sustainability in this industry,” says Luyt.

“We are cognisant of the fact that most people don’t belong to medical schemes due to affordability issues. Our annual increases are calculated in a responsible and conservative manner which limits spiked increases. Several other elements, such as service provider costs and member profiles also contribute significantly to the increase. For 2015, we have enhanced dentistry limits at rates higher than the risk contribution increase for select options. On the other hand, our healthcare benefit limits have been increased by the respective risk contribution increase,” adds Luyt.

Bestmed has announced that its Beat options will get an efficiency-discount sub-option (EDOs). These EDOs will differ from the normal options, in terms of lower contributions, network of hospitals, Specialists operating within the network hospitals and most of the big pharmacy groups. EDO’s have become increasingly popular over the last number of years and growth within the open scheme industry is primarily on these options. This allows members who are faced with affordability challenges to still have access to private healthcare within a specific network.

Furthermore, the Scheme has announced that it will extend its cover for HPV Vaccination as part of the preventative care benefits for female dependant, previously up to the age of 13 and now up to the age of 26 years in the the Beat 4 to Pace 4 options.

In conclusion, La Grange recommitted the Scheme to service excellence and assured attendees that with a service level above 80 percent and improving process efficiencies, Bestmed not only aims at satisfying the needs of members but also exceeding their expectations, demonstrating its philosophy of customer intimacy.