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Health Squared Medical Scheme set to disrupt the healthcare market as two prominent players combine forces

29 October 2018Resolution Health and Spectramed

Top medical schemes to join forces and further enhance value for members

A combined total of more than 80 years’ solid healthcare funding experience will soon unite following the launch of Health Squared Medical Scheme through a merger between Spectramed Medical Scheme (Spectramed) and Resolution Health Medical Scheme (Resolution Health) as from 1 January 2019. 

Both schemes’ members have voted in overwhelming favour of the merger with independent auditors confirming that 93% of members voted for the formation of a united scheme. The Schemes have extensively engaged with the Council for Medical Schemes (CMS) and, with their involvement, the merger process is now subject to final approval by the CMS and Competition Commission. 

The coming together of Spectramed and Resolution Health represents a significant development within the South African healthcare funding industry as it offers an opportunity to combine the experience, strengths and track record of two of the country’s foremost medical schemes into a significant new entity within the healthcare funding market. 

Looking to the future of South African healthcare, the integration of the schemes will place them in a much stronger position to negotiate better value for all members from healthcare providers and ensure longer-term growth and security. The new scheme would offer 11 benefit options and boast some of the lowest premiums in the market. 

Health Squared will also continue to benefit from the administration experience of Agility Health, which is currently the managed care provider and administrator for both Spectramed and Resolution Health. This means that employer groups will continue to enjoy an unmatched and fully integrated service offering for their entire healthcare, employee benefits and employee wellbeing needs while members will not experience any operational changes to the service they are accustomed to. 

Of interest to brokers is that healthcare cover through Health Squared will be seamlessly integrated into a comprehensive medical scheme, gap and co-pay cover, health savings, employee wellbeing and employee benefits solution. This is offered as a single, integrated offering with reporting and accessibility uniquely simplified. 

The Spectramed and Resolution Health alliance will represent considerable added value for members of both medical schemes in the form of greater efficiencies and economies of scale. In addition, it will create an important strategic alliance that will positively impact scheme members and the industry as a whole. 

“The amalgamation of the two medical schemes will ensure that members benefit from the highest levels of service, a sophisticated product offering and a compelling value proposition,” adds Chairman of the Board of Trustees (BOT) of Spectramed, Steve Thobela. 

“Many Resolution Health and Spectramed members have formed a strong relationship with our representatives, and we wish to assure them that they can look forward to the same high level of service from the same friendly, professional team who have always served their interests,” Michael McGuigan, Chairman of the Resolution Health BOT says. 

The launch of Health Squared forms part of an overall strategy to protect the interests of members while strengthening the service offering in the context of future developments in the South African healthcare landscape. 

“Health Squared promises a powerful alternative that the market has been craving for years. This is the opportune moment to launch a scheme with a fresh approach that is characterised by an extensive range of cover options that have been elegantly designed to offer simplicity without compromising the breadth of choice available. This potent combination, backed by Agility Health’s administrative prowess, is a formula for ongoing success,” McGuigan concludes.

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