Sizwe strengthens stronghold in low income sector

Financially strong Sizwe Medical Fund, today announced a minimal 2,8% increase in 2007 benefit contributions making it one of the lowest contribution increases in the industry for 2007. 
 
Calculated off an already low base following a 0% increase for 2006, this effectively amounts to one of the lowest Rand increases in the market place and makes Sizwe the market leader in value for money over a two-year period

Speaking at the launch of its 2007 products, Sizwe Medical Fund principal officer, Linda Gabela stressed once again that affordable healthcare should not be a luxury and confirmed that the new product structure would allow for a general 6% increase in benefits across all options. This at a time when many other schemes are cutting benefits in order to keep contribution increases at a maximum of 3% above CPIX as specified by the Council of Medical Schemes.

"Contribution increases may be an unfortunate but necessary evil to keep up with inflation rates but at least we can restore the balance by keeping our increases as low as possible while increasing benefits simultaneously to provide members with added value for their money," says Gabela.

She said in line with the growing need to provide affordable options for the low income sector, Sizwe had revised its Primary Network Option as a low income option,  offering highly competitive benefits.  The Primary Network Option will be available as from January 01, 2007 with contributions starting as low as R384,00 for a principal member. Highlights of the new option include R400 000,00 private hospital cover for the family.

Gabela said another major advantage of the option is the broadened network of doctors which now encompasses more than 7000 GPs nationally.

Commenting on the reduction in income categories across all options, Gabela says, " Many of our members have been subject to "bracket creep" as a result of annual salary increases and we have therefore streamlined our contribution brackets,  effectively narrowing the number of brackets in order  to minimize the chance of members experiencing double increases due to salary increases."

Sizwe Medical Fund has grown from strength to strength during 2006, building extensively on its robust reserve level projected to be more than 50% at the end of 2006. Last year its strong financial standing was recognized when the fund was upgraded to an A+ credit rating from internationally renowned independent rating company, Global Credit Rating (GCR). This rating was upheld in 2006.

The rating, which is based on a medical funds ability to pay claims indicates that Sizwes claims paying ability is well above average.

"Our aim is to be number one in the traditional market as well as the lower income market. Affordability is the underlying force driving healthcare legislation and we believe our new structures demonstrate that we have responded to the needs of the market we serve,  as well as governments stated objective of making healthcare affordable to the needy," concludes Gabela.