The scheme bolstered its operating surplus to R134m and‚ after adding investment income‚ achieved a net surplus of R174m in 2012 (up from an R85m operating surplus and R118m net surplus in 2011).
As medical schemes are non-profit entities‚ these surplus funds have all been added to member reserves. This resulted in Momentum Health's solvency level growing to a 28.6%, well above the 25% legislative solvency requirement set by the Council for Medical Schemes.
The scheme's continuously improving results have once again been reaffirmed by the Global Credit Rating (GCR)‚ an independent risk rating group‚ which upgraded Momentum Health to an AA- rating for 2012. This rating recognises the scheme's high claims paying ability‚ sustainable product design and financial strategy.
"Our success is underpinned by a growth strategy that focuses on providing the right mix of flexible healthcare products and strong service levels to an astute consumer in today's market‚" says Damian McHugh‚ head of marketing and sales for the medical scheme.
In 2012‚ the scheme grew by 8% to cover 100 936 families.
Momentum Health boasts the youngest principal member average age among the top 10 open medical schemes in South Africa‚ sitting at a healthy average age of 42.7 years.
"A medical scheme's average member age is one of the best indicators of future claims costs and if that's getting older it means that the scheme's claims costs are going to increase in real terms. It is estimated that claims increase by between two percent and three percent with every year that membership gets older‚" says McHugh
The scheme has also kept its total non-healthcare costs to a low of 14.5%‚ while still maintaining high levels of service and care for its members.
"By using our innovative products‚ Momentum Health has not only enabled greater wealth for the scheme‚ but also ensured healthy ways for members to improve both their own health and wellness‚" claims McHugh. "The increasingly popular HealthReturns and the R150m held in HealthSaver accounts at end 2012‚ clearly indicates that," he added.
"Affordable healthcare cover that delivers value for members has become an essential part of a scheme's sustainability. For us‚ it's not just about providing medical aid. We believe in offering healthcare solutions that meet the individual needs of all our members‚" claims McHugh.
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