Samwumed medical scheme announces benefit enhancements, contribution increase, for 2008

Contributions to increase by an average of 11%

SAMWUMED, the worker-based medical scheme for municipal staff nationally, has announced that the cost of cover for members will rise by an average 11% next year. This follows a year of no contribution increases.

The scheme covers almost 80 000 lives and boasts financial reserves far above the 25% required by legislation.

Fund officer Neil Nair said: “The financial strength of the scheme has allowed the trustees to enhance benefits enjoyed by members while keeping contribution increases to a minimum. This has been made possible by containing operating costs and the fact that, as a not-for-profit organisation, we have no shareholders to satisfy.”

Samwumed is a self-administered scheme that prides itself on low administration fees that equate to an average monthly cost per member of just over R90. Compared against both open and restricted medical schemes, SAMWUMED’s non-healthcare costs are amongst the lowest in the industry.

Contributions are affordable and benefits include ambulance services, a countrywide private hospital network, an excellent chronic programme and comprehensive HIV/Aids programme.

Members can go to doctors or specialists of their choice, and the scheme has increased the number of pharmacies on the network. No late joiner penalty fees are imposed on members, regardless of age.

“Strong worker control is paramount in the governance of the scheme and the board is composed of a 100% worker base, trained in the essentials of medical aid governance.

“Sound governance, self-administration and an in-house healthcare delivery model have allowed the scheme to manage a prudent contribution policy, while ensuring that the healthcare needs of its members are met,” said Nair.