Momentum appears unconcerned about the NHI or a legal challenge from Medscheme, with CEO Jeanette Marais saying the company will fork out millions and hire hundreds of staff in anticipation of picking up the reins of the Bonitas contract on 1 June, reports News24.
Marais said as far as the National Health Insurance is concerned, the government “has realised it doesn’t have the administrative capacity of the private sector”.
On the cards for Momentum are 744 new employees and the establishment of 22 walk-in centres to cater to the 750 000 Bonitas beneficiaries who will be transferred to its health administration platform.
It has budgeted at least R100m over the next six months as it picks up the the reins of Bonitas – despite a court challenge by Medscheme, which lost the contract.
Marais said they had already begun refurbishing their Sandton office to accommodate the new employees it will need to handle what Momentum says is the largest transfer of a medical scheme from one provider to another in SA’s history.
“We are going full steam ahead to make sure that on 1 June, we are ready to take on Bonitas and Bonitas members.”
The addition of Bonitas Medical Aid’s more than 750 000 beneficiaries to Momentum Health’s administration business will boost the unit’s market share from 22% to 30%, making it SA’s second-largest medical scheme administrator.
Discovery Health claims to manage 39% of SA medical schemes’ total membership.
A potential obstacle, however, is the legal challenge issued by Medscheme, which lost the Bonitas contract earlier this year. Medscheme – owned by Sanlam subsidiary AfroCentric – has administered the Bonitas medical fund since 1982, but claims it lost the business due to a compromised tender process.
Medscheme approached the High Court in December to stop Bonitas from awarding tenders, alleging in court papers that former AfroCentric executives had effectively captured the procurement process.
Central to its claims is an investigation launched in February 2025 by the Council for Medical Schemes (CMS), over the awarding of previous Bonitas contracts to entities that Medscheme alleges are linked to former AfroCentric executives.
However, Momentum says this has nothing to do with its winning of the Bonitas medical aid administration contract in January 2026.
Marais said that Medscheme’s application to have its case heard on an urgent basis was “kicked to touch” on 3 March when the Acting Judge President decided its request was frivolous, poorly prepared and not ready for a court hearing.
Currently, Medscheme’s case is in limbo, waiting for a court date. But Marais is confident that Momentum won the Bonitas contract fairly and that Medscheme will not be able to overturn it in court.
“We participated in a proper procurement process. I doubt that there is any chance that this is going to be stopped by the court before we have moved 750 000 members on to our back office (on 1 June),” she said.
Given the significant investment in Momentum Health, the group also appears unconcerned about any possible threat to the business by the NHI.
Marais said the Government Employee Medical Scheme (GEMS), which is also administered by Momentum, has renewed its contract for another five years, further cementing its future sustainability.
She said the government has realised it does not have the administrative capabilities to launch the NHI without private-sector help.
“It’s not a skill they have. We have those skills. Ourselves, Discovery and whoever else survives will probably play a material role in NHI going forward. We are positioning ourselves for that.”
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Bonitas-Medscheme row threatens jobs – Sanlam CEO
Medscheme, Bonitas tender battle escalates