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Liberty Medical Scheme shows good growth

18 Oct 2010

From 1 January 2011, medical aid rates of Liberty Medical Scheme will go up by an average of 12.8%. According to Andrew Edwards, executive principal officer at Liberty Medical Scheme, "The increase was influenced by aspects such as practitioner costs and medical technology, which comes at a high price every time there are advancements; not forgetting that the profitability and future sustainability of the scheme also plays a role."

The scheme has shown a strong, sustainable and financially liquid long-term business that continues to grow as a result of its customer-centric business model, extensive distribution network and solid brand. This is in light of the merger with Medicover Medical Scheme in January 2010, which contributed considerably to its financial stability with a post-merger solvency around 30%, significantly above the required 25% statutory industry minimum.

Rating upgraded

Independent rating company Global Credit Rating upgraded the Scheme from A+ to AA-, which shows that the merger has enhanced the longer-term competitiveness and sustainability of the new consolidated scheme, augmenting its level of financial reserves, scale efficiencies, degree of bargaining power with healthcare providers and membership diversity.

A health initiative was packaged as a series of documentary-style films, screened at Ster-Kinekor cinemas across the country on issues including breast cancer, cardiovascular disease and diabetes to encourage South Africans to manage their health.

"Going into 2011, members can look forward to a healthier growing scheme with future prospects of expansion, cost-effective medical cover to suit their pockets and continued empowerment through information-sharing," he concludes.