The Council for Medical Schemes has given the green light to the merger of CompCare Wellness Medical Scheme and Selfmed. This comes after the members of the two schemes voted in favour of the amalgamation and the establishment of a new scheme, which will be known as CompCare Wellness Medical Scheme.
Josua Joubert, CEO and principal officer of CompCare, said that the amalgamation was proposed in order to strengthen the two schemes and to ensure ongoing value for members. “The South African private healthcare industry has undergone considerable change in recent years. One such noteworthy trend is the consolidation of the medical schemes industry. This development, which is supported and endorsed by the CMS, is aligned to the white paper on National Health Insurance.
“Among the key reasons for the consolidation of medical schemes is the benefit it holds for medical scheme members such as greater influence, improved sustainability and bargaining power, which protects members as it improves cost efficiencies. In addition, a consolidated scheme such as this will be able to achieve a broader national footprint.”
According to Christo Becker, principal officer of Selfmed Medical Scheme, the proposed amalgamation of the schemes, with Selfmed amalgamating into CompCare as from 1 September 2019, was strategically planned and carefully considered.
“The combined balance sheet and increased membership size will unlock efficiencies and economies of scale that are likely to have considerable benefits for members. The amalgamation of the two schemes will result in a combined scheme with reserves significantly above the regulated 25%,” Becker said.