Spectramed and Liberty Medical Scheme Amalgamation
Spectramed and Liberty Medical Scheme are proud to announce the amalgamation of their two schemes. Following the earlier announcement this year the amalgamation agreement and exposition document have now been signed. The exposition document relating to the transaction has been submitted to the Registrar of Medical Schemes on 16 September 2013 and is thus available for inspection at his offices. The exposition document is also available for inspection at the two scheme’s offices.
Members of the two schemes have been asked to vote and the proposed amalgamation now needs to be approved by the Council for Medical Schemes (CMS) and the Competition Commission. Once the amalgamation is approved Spectramed and Liberty Medical Scheme will form one medical scheme effective from 1 January 2014. This new, amalgamated scheme will be called Liberty Medical Scheme.
The amalgamation of the schemes will present many positive changes:
• The new amalgamated entity is likely to be the sixth largest open medical scheme in South Africa.
• Economies and efficiencies of scale can be achieved more easily, especially in respect of fixed administrative costs.
• The new amalgamated scheme will work to the collective benefit of all members and will have the backing of one of South Africa's leading insurance and health companies.
• This merger of equals will also present a wider range of benefit options to members of both schemes, giving them even more choice for their (and their family's) healthcare cover.
• The amalgamated scheme will be in a strong financial position with healthy reserves, well in excess of the legislated 25% minimum.
Spectramed and Liberty Medical Scheme are excited to embark on this new partnership and we are eager to work together as the new Liberty Medical Scheme, improving the lives of our members in 2014 and beyond.
About Spectramed
Spectramed is one of the top-15 open medical schemes in South Africa and has been in existence since 1957. The scheme has evolved over this time from a closed-scheme to an open-scheme and today serves the healthcare needs of more than 40,000 beneficiaries. Spectramed is financially stable with a solvency ratio in excess of 40% and is managed by an independent Board of Trustees comprising no less than 50% of members, elected by members present at an Annual General Meeting. The Board of Trustees is supported in its day-to-day execution of duties by a co-sourced operating model, comprising of no less than 100 staff. The Scheme offers beneficiaries 5 Next GenerationTM benefit options, with varying contribution levels in accordance with levels of earnings.
About Liberty Health
Liberty Health partners with medical schemes, information technology systems companies, employee wellness programmes, medical risk management and healthcare administrators to service a range of corporate and individual client needs in South Africa and the rest of Africa. Liberty Health, through its subsidiary Vmed, is the administrator for a number of medical schemes including Liberty Medical Scheme and Spectramed. In addition, Liberty has one of the strongest financial adviser networks in the industry, which distributes and advises on the full range of medical scheme options, medical insurance and medical gap cover products offered by Liberty Health.
