Category Healthcare
SUB CATEGORIES General  |  HIV |  Medical Schemes | 

Medicover End of curatorship

15 March 2006 Sandi Banks, Membership and Marketing Manager

The High Court of South Africa has granted the lifting of Medicovers curatorship on Friday, 24 February 2006. Medicover 2000 was placed under curatorship in 2001 following a number of irregularities concerning the scheme. During this time the curators successfully managed to claim back approximately R59 million of the reinsurance premiums from a number of parties involved.

Medicover has since grown substantially and performed above expectation. The schemes reserve ratio has increased to 86% during this period, while its membership has also gone up to 43 000 from 27 000.

The successful reorganization of Medicovers business by the curators has resulted in the scheme being in a good position to operate under the leadership of its new board of trustees and principal officer. The scheme is now in a financially strong and stable position.

For Medicover members, the termination of curatorship means that the elected Board of Trustees and Principal Officer will manage the business of the scheme without the involvement of the curators. The elected trustees have the skills required to address the risks Medicover faces and will ensure that the gains achieved by the Scheme during curatorship are maintained. Its task is furthermore to build on the vision of the Scheme namely to be a leading medical Scheme, providing its members with superior cover and service, ensuring value for money at all times.

The day-to-day operations will run as smoothly as ever and members will not notice any change. The systems and processes have been in place for quite a while and have proven to be efficient and cost-effective. Medicover has increased the range of benefits and annual limits for cover on its products every year since curatorship commenced.

Global Credit Rating initially accorded Medicover a claims paying ability rating of A, from A- previously, during the first year of curatorship. The Scheme has subsequently been awarded ratings of AA-, the second highest rating an open medical scheme can be awarded. These ratings were based on Medicovers proven ability to post significant underwriting surpluses over the review periods, coupled with the fact that the solvency margin is amongst the highest in the industry. Medicover has a substantial and highly liquid investment portfolio with very high cash coverage ratios, and a delivery cost infrastructure well below the average of the open medical scheme industry.

Medicover aims to achieve a balance between financial sustainability and the creation of marketable plans that provide enhanced benefits to members. The Bona and Bona-plus plans are just one example of how Medicover pre-empted the market in establishing a product ahead of the new Tax Reforms Regulations, to the benefit of its members.

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