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Mediclinic News : Bonitas: A focus on members and amalgamation set the scene for 2017

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Bonitas: A focus on members and amalgamation set the scene for 2017

Date

2016-09-29

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News Description

FANEWS.CO.ZA Dr Bobby Ramasia, Principal Executive Officer, Bonitas says, “Negligible economic growth, increased interest rates, inflation and basic costs of living have resulted in significant financial strain on consumers. These factors were compounded by: A falling Rand, adverse global developments, rising costs of hospital admissions, fraud, wastage and abuse, the cost and increased use of PMBs. Medical inflation has, as expected, surpassed the consumer price index by between 3 and 5%*. ‘Despite the challenges and pressures faced by the industry, we have managed to curtail our 2017 contribution increase to be competitive and only marginally more than the 2015/2016 weighted increases of 10,6% and 7.2% and respectively.’ However, while some schemes have reduced benefits to help curb increases, such as the reduction in medical savings accounts, this unfortunately leaves the consumers bearing the brunt of the costs. We continue to utilise other methods to curtail costs. We don’t see challenges, we see solutions To limit healthcare cost increases we are implementing the following cost-containment solutions: • Negotiating rates with healthcare providers and hospital groups to encourage members to use preferred providers to extend their benefits, limit co-payments and ensure they receive quality healthcare. • Increasing our focus on prevention and utilisation of managed care protocols in disease management and co-ordination of care and wellness through our Managed Care programme. Early detection and proactively managing the diseases are key components of this. • Upskilling family practitioners and partnering with quality service providers. • Partnering with Document Based Care – this is an interdisciplinary functional rehabilitation including treatment from doctors, physiotherapists and biokineticists to treat severe neck and back pain. It is an integrated approach and in 85% of cases surgery can be avoided • Using the Emerging Risk Model, an innovative tool to identify emerging risk members before they develop high risk conditions, with concomitant increases in costs to the members • Bringing new products and a broader product range of options to make quality healthcare more affordable and accessible to all South Africans Bonitas has also restructured their offerings for 2017, to appeal to a wider market. This includes a full suite of traditional medical aid options and various saving options to suit a range of healthcare needs and pockets. A new savings option, BonComplete – offering an above threshold benefit, cover for 31 chronic conditions (including ADD in children in under 18) and rich hospital benefits, has also been introduced. Two years ago a feasibility study was conducted in order to investigate an amalgamation between Bonitas and LMS – the largest transaction of its kind in the SA healthcare industry. Apart from creating a stronger scheme this is seen as one of the pro-active ways to control costs. Amalgamation gets the green light The much anticipated amalgamation between Bonitas and LMS (previously Liberty Medical Scheme) has received the stamp of approval by the Competition Commission and the Council for Medical Schemes (CMS), effective 1 October 2016. The benefits of which include: • A stronger and more sustainable scheme providing enhanced cover and benefits though economies of scale • A broader national footprint and consolidation of resources and fixed costs which will assist with relieving pressure on future contribution increases. • Bonitas’ strong financial stability and generally predictable claims history should also translate to more value for members of the new Scheme • Bonitas, administered by Medscheme, is South Africa’s second largest open medical aid with financial indicators above the legislated requirements and industry average. It has one of the highest credit ratings in the industry, which is synonymous with a high claims-paying ability, in turn ensuring members, access to quality healthcare. ‘With our combined years of experience we have an intricate understanding of the needs of the consumer in the complex healthcare market,’ explains Ramasia. Despite the industry challenges, Bonitas was awarded some of the industry’s most prestigious awards - 2016/2017 ICON Brands Survey Winner of the Medical Aid category - Titanium Award for excellent service to members from the Board of Healthcare Funders - 2nd place in the GTC survey *Inflation is currently 6 percent.
Created at 2016/10/04 04:36 PM by Mediclinic
Last modified at 2016/10/04 04:36 PM by Mediclinic