58th AGM Highlights

Bestmed Medical Scheme hosted its 58th Annual General Meeting (AGM) virtually on Thursday, 23 June 2022. We are pleased to inform you that the event was a resounding success, here are some of the highlights:

In 2021, Bestmed reached the 100 000 principal membership milestone, which, solidified our position as the fourth largest medical scheme in the country, growing steadily towards being third. We now have over 209 000 lives under our care, and we remain committed to continue delivering the excellent service that our members have become accustomed to.

Key contributors

The following are key contributors in ensuring the financial sustainability of the Scheme:

• Membership: The Scheme’s principal membership increased during the 2021 financial year and the Scheme ensured the sustainability thereof by enhancing benefit options to reflect stakeholder needs and by announcing a competitive weighted average contribution increase for 2022. 
• Benefits and Limits: The Scheme manages costs through benefit sub-limits, clinical protocols, designated service provider agreements and application of Scheme tariffs. During 2021, the Scheme announced that the benefit limits would exceed the weighted average contribution increase.  
• Managed Healthcare Services Providers: The Scheme engages healthcare providers to assist in the management of Managed Healthcare programmes, which include disease management, network management, hospital benefit management, dental benefit management, HIV management and pharmaceutical benefit management. Each one of these programmes contributes extensively towards managing the risk of increased benefit utilisation and claim costs to the Scheme. 
• Risk Management: The Scheme has an effective risk management process whereby risks are monitored and flagged, and the necessary corrective actions and/or mitigating controls are implemented where risks have been identified.
• Investment Strategy: The Scheme has an effective investment strategy which focuses on maximising returns, but also safeguarding capital.

Our sustainable growth is only possible with the support of our members, our advisors, our healthcare providers and our employees and we are sincerely grateful.

 The financial highlights for 2021 are as follows: 

• Net Healthcare Results: R51,9m (2020: R767,8m).
• Non-healthcare Expenses as percentage of Risk Contributions: 8.35% (2020: 8.61%). 
• Investment Income: R294,3m (2020: R166,7m), which also contributed to the Scheme’s net surplus of R288,9m in 2021 (2020: R877,9m).
• Total Member Funds: R3,36bn (2020: R3,0bn) with a solvency of 45,68% (2020: 44,23%), 20,68% above the statutory solvency requirement of 25%. The resultant average accumulated funds per average member as at 31 December was R33 256 (2020: R31 292).
• Cash cover of Risk Benefits: 8.7 months (2020: 9.6 months), which ensures that sufficient cash exists to cover unforeseen and extraordinary high-cost claims, such as the 2020 COVID-19 pandemic.

Other achievements in 2021

• Highest ranking overall on the customer service index, loyalty, value, quality, and lowest complaints categories among open and closed medical schemes in the 2021 South African Customer Satisfaction Index (SA-csi).
• Titanium Award for Service to Membership: Open, Closed & Self-administered Medical Schemes, Administrators and Managed Care Organisations in 2021, hosted by the Board of Healthcare Funders (BHF).
• Titanium Award for Excellence in Creating Access to Quality Healthcare, recognise Bestmed’s commitment to a high standard of service and providing access to quality healthcare to all members in 2021.

Bestmed is proud of the growth it achieved during a period of economic difficulty in South Africa. Bestmed was the only large medical scheme in the country to grow in membership during 2020. 

We would like to thank you for your continued support and participation in the affairs of Scheme.

Access the recording of the 58th AGM proceedings HERE.