Medihelp in line with average industry increase for 2010

Medihelp, South Africa’s third-largest open scheme, has announced an overall average premium increase of 13.62% for its Dimension and Necesse benefit option range for 2010.

Anton Rijnen, Principal Officer and CEO of Medihelp, says the average increase is in line with that of the industry and that various factors have played a role in determining the increase, including Medihelp’s current member age profile, solvency ratio, frequency of claims by members, as well as the Scheme's strategic forecast for 2010. The goal with the increase is to ensure Medihelp's sustainability in the long run, offering peace of mind to all its members.

“Growth-wise, Medihelp’s strategy focuses specifically on its Dimension range of benefit options and the Necesse network option. Both of these have yielded good financial results with increasing memberships since the beginning of 2009. Overall, Medihelp has grown its number of lives to more than 216,000 to date with its solvency ratio remaining above 30%. In addition, the average age of its members has dropped, meaning that the Scheme is growing with younger members,” he says.

According to Rijnen, the economic downturn also played a part in the Scheme’s average increase, as was the case with the rest of the industry. “Escalating healthcare costs make it increasingly challenging to manage the costs of any benefit option. Medihelp will retain its current seven benefit options for 2010 and has managed to keep the premium increases of the individual options between 11.5% and 14.8%,” he says.

Rijnen points out however, that the premium increase for the Scheme’s most comprehensive benefit option, Medihelp Plus, is not included in the above overall average increase. “The vast majority of this option’s members are state pensioners who retired before 1 July 1992. These pensioners had to be included in the Scheme’s risk profile and on this specific option in 2005 following a decision by Government. Thus, the members of this option have an average age of 72.61 years, which gives the option a higher than average claims profile compared to Medihelp’s other benefit options and the industry as a whole. In order to continue offering a product to cater for this group of pensioners and their special needs, an increase of 28.5% for 2010 was necessary,” he says.

As one of the largest self-administered, non-profit schemes in the country, Medihelp continues to offer value for money to its members. “With 104 years’ experience in the industry, Medihelp has a proven track record of sustainability and service and is still one of the leading schemes in the country. A case in point is our recent improved Global Credit Rating score of AA– (AA minus) which was awarded for our claims-paying ability. In addition, Medihelp was voted the seventh best medium-sized company to work for in Deloitte’s Best Company to Work For survey for 2009, released earlier this month,” he says.

Rijnen adds that it is important for members to realise that their health is a gift and that managing their healthcare needs is the joint responsibility of each individual and the Scheme. "Medihelp's benefit options for 2010 will help them treasure the gift of good health,” he says.