Medshield announces low rate increase and self-administration for 2009

Medshield, one of the largest medical schemes in South Africa, today announces a flat rate increase of just 10.9% across all options. As one of the lowest increases in the industry – and against a backdrop of rising interest rates, exploding healthcare inflation and a global financial crisis – this news will be welcomed by Medshield members.

Clinton Alley (pictured), Executive Principal Officer for Medshield Medical Scheme, comments, “Stringent financial controls across all aspects of the Scheme, have once again enabled us to keep the rate increase for 2008 / 2009 as low as possible.”

He continues, “Medshield has traditionally earned itself a reputation for offering fantastic value for money. We’ve worked extremely hard to devise meaningful day-to-day benefits that really offer our members a saving in the long-run. Now with this low rate increase, we’ve demonstrated once more that we offer a cost effective and valuable healthcare solution to scores of South Africans.

After much research and deliberation, Medshield today also announces that it is moving to a self-administration environment, effective from 1st February 2009. While previously, the Scheme has operated outside of the self-administration route, an increasingly concentrated focus on customer-service, as well as limiting non-healthcare expenses, have resulted in the move.

Alley explains, “Self-administration has many benefits, all of which we believe contribute to an even more competitive offering to our members. Between R20 - R40 Million can be saved through self-administration and this money can instead go towards building up reserves and ultimately enabling us to offer even better benefits. He adds, “And as importantly, we can more effectively manage our vision of being service-focused.”

Medshield’s self-administration will employ the ITQ Business System as its software partner – perhaps better recognised for the development of the Nexus platform.

The national Medshield Rates and Benefits Launch Road Show runs from 13th to 24th October. Brokers wanting to find out about the event in their area and register to attend can either phone 011 716 7100 or email [email protected].