Medihelp keeps premiums low, boosts benefits for 2008

Medihelp has announced an average premium increase of below 10% at its product launch for 2008 in Midrand this morning.

In addition, the Scheme added separate comprehensive dental benefits as well as separate extended optometry benefits to three of its options.

According to Anton Rijnen, Chief Executive Officer of Medihelp, the Scheme's healthy reserve level in excess of R650 million and a net surplus of R64 million at the end of 2006 enabled it to restrict its average increase to 9.4%. "Our current high solvency ratio of more than 25% was a contributing factor in keeping our premium increases stable over the past few years," says Rijnen.

"Medihelp boosted its day-to-day benefits of Dimension Prime 3, Dimension Elite and Medihelp Plus by creating a separate benefit for dentistry and also through a separate benefit for optometry - without decreasing the pooled benefit that was previously available for day-to-day expenses. Consequently, members now have more benefits available for other day-to-day expenses such as consultations. However, we have not increased our number of options or changed their structures dramatically since it has been a working formula for our members," says Rijnen.

The increase per option for 2008 is as follows:

Necesse:  7%
Dimension Prime 1: 9.6%
Dimension Prime 2: 9.4%
Dimension Prime 3: 7.9%
Dimension Elite: 5%
Medihelp Plus: 12.6%  

Rijnen believes Medihelp's overall offering satisfies its clients and is alluring to those who are not members of the Scheme yet. Especially the Necesse benefit option that caters for the lower end of the market and is on a strong growth curve.  "Our range of benefit options fulfils the needs of every sphere of society and also adds something special with our lifestyle programme, STEPup, which was launched a year ago and is doing well.

"In addition, we are still the best scheme in the country when it comes to client service according to the prestigious Orange Index and we have been awarded an A+ rating for our administration and claims-paying ability for the ninth consecutive year by Global Credit Rating. To top it all, Medihelp was rated the 10th best company to work for in the category for medium-sized businesses by the Deloitte Best Company to Work For survey in 2007," says Rijnen.