Spectramed Medical Scheme (Spectramed) and Resolution Health Medical Scheme (Resolution Health) are to merge from 1 January 2019 to form Health Squared Medical Scheme. Both schemes’ members have voted in overwhelming favour of the merger with independent auditors confirming that 93% of members voted for the formation of a united scheme. The Schemes have extensively engaged with the Council for Medical Schemes (CMS) and, with their involvement, the merger process is now subject to final approval by the CMS and Competition Commission.
The integration of the schemes will place them in a much stronger position to negotiate better value for all members from healthcare providers and ensure longer-term growth and security. The new scheme would offer 11 benefit options and boast some of the lowest premiums in the market.
Agility Health, currently the managed care provider and administrator for both Spectramed and Resolution Health, will continue to administer Health Squared.
Of interest to brokers is that healthcare cover through Health Squared will be integrated into a comprehensive medical scheme, gap and co-pay cover, health savings, employee wellbeing and employee benefits solution. This is offered as a single, integrated offering with reporting and accessibility uniquely simplified.
The Spectramed and Resolution Health alliance will represent added value for members of both medical schemes in the form of greater efficiencies and economies of scale. “The amalgamation of the two medical schemes will ensure that members benefit from the highest levels of service, a sophisticated product offering and a compelling value proposition,” chair of the Spectramed board of trustees (BOT), Steve Thobela, said.
“Many Resolution Health and Spectramed members have formed a strong relationship with our representatives, and we wish to assure them that they can look forward to the same high level of service from the same friendly, professional team who have always served their interests,” Michael McGuigan, chair of the Resolution Health BOT said.
“Health Squared promises a powerful alternative that the market has been craving for years. This is the opportune moment to launch a scheme with a fresh approach that is characterised by an extensive range of cover options that have been elegantly designed to offer simplicity without compromising the breadth of choice available. This potent combination, backed by Agility Health’s administrative prowess, is a formula for ongoing success,” McGuigan said.