Bonitas dispute resolved
After months of speculation regarding the future of Bonitas Medical Fund, South Africa’s second largest open medical scheme, the impasse with the Council for Medical Schemes (CMS) has finally been resolved t. On 17 September , the South Johannesburg High Court ordered that the powers and functions of the Board be vested in the current acting Principal Officer, Mr Gerhard van Emmenis and that a Compliance Officer, Mr Joseph Maluleke, be appointed until a new board is elected.
A special general meeting of Bonitas members will be convened before December 6 to elect a new Board of Trustees.
Gerhard van Emmenis is upbeat about the latest developments. "The press release issued by the Council for Medical Schemes specifically states that the scheme will not be placed under curatorship and once again emphasises the financial strength of Bonitas ", he says .
"It also finally puts an end to the uncertainty that has plagued the scheme and its members over the past 12 months. Bonitas has a bright future and we can now concentrate on what we do best - serving our 700 000 loyal members and beneficiaries as we have been doing for the last 28 years".
Continues van Emmenis: "I want to reassure our members, our supporting brokers as well as our partners throughout the medical scheme industry that Bonitas is entering a new era that will see the fund building on its existing foundation of strong financial stability to provide even better value for money products and services to our members."
Despite the uncertainty, Bonitas’ financial stability has never been in doubt. The Registrar of Medical Schemes repeatedly advised members and brokers against making any hasty decisions as the scheme remained financially strong.
Evidence of this is Bonitas’ 35.7% solvency ratio; an A+ credit rating ; one of the lowest age profiles of any large open scheme; one of the lowest non-healthcare costs in the industry and a 28-year heritage of providing value for money healthcare benefits to all South Africans, Bonitas has a compelling offering for the market.
Due to the latest developments, the prognosis for 2011 and beyond looks promising indeed.
