Finances: Fedhealth Bucking the Downward Trend
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Kahn said this was particularly positive in light of the current economic situation and potential membership loss to the Government Employees Medical Scheme (GEMS).
In his review to members for the financial year ending 31 December 2008, he said that the scheme recorded a net surplus of R76.5 million and investment returns of 8.6%. The scheme`s credit rating was re-affirmed at AA- by Global Credit Rating, which demonstrates a healthy claims paying ability.
On membership growth, Kahn said that the scheme had lost some members to GEMS, but confirmed the scheme had been working hard at increasing its private membership base. “At the beginning of 2009 membership had reached close on 85 000, with more than two-thirds of these in the private sector.”
Kahn said that members` reserves stood at R544 million on 31 December 2008. “Although claims increased by more than 22% to RI.52 billion, judicious investments and careful monitoring of expenditure saw the net position improve significantly. This is reflected in non-healthcare expenditure declining from 11% to 9% of gross contributions,” he said.
In conclusion, Kahn said that one of the challenges moving forward will be how the NHI framework develops and its subsequent impact on medical aid members and schemes. Kahn says the current views being expressed are still too varied but is confident that sense will prevail in the end and hopes that the final proposals developed will come from a collaborative effort with all relevant stakeholders.
Business News Sector Tags: Finance|