Cimas Medical Aid membership declines

by Staff reporter

2012 August 10 11:53:56 | 1791 Views

CIMAS, the country's oldest and largest medical aid company in terms of membership, says its market share remained static, although it had "witnessed some firms coming off medical aid altogether" during the year to December 31, 2011.

Membership had declined from 178 000 in 2010 to 177 000 during the reporting period.

In financial results for the period released last week, the medical aid group, which demerged its administration from the medical aid fund to create a new company called Medco, said despite economic challenges, Cimas Medical Aid Society had continued to consolidate its position as the leading medical aid service provider in the country.

The society had recorded a surplus of US$3,2 million during the full year reporting period, from US$4,7 million realised during the previous year.

The balance sheet had grown by 35 percent on the 2010 size, while reserve weeks grew from four weeks in 2010 to five weeks during the review period.

This was, however, still far below the recommended threshold of 12 weeks. Cimas said the target would not be achieved soon, although the reserve weeks continue to grow.

"The overall market size for the medical aid sector has remained static. In fact in the year just gone by, we have witnessed some firms coming off medical aid altogether.

While we faced the economic challenges, Cimas Medical Aid Society continued to consolidate its position as the leading medical aid service provider in the country.

"Declines in membership were noted in basicare package, Primary package as well as in Special Schemes.

"The other three packages registered modest growth," said board chairman, Steve Kuipa.

"The society continues to engage all its stakeholders with the objectives of enhancing service delivery. Meetings are being held with members and providers in order to explain benefits and the society's operations," Kuipa said.

Kuipa noted that liquidity challenges in the economy, which had militated against growth in membership, would continue in the current year.

"I am positive that we will eventually overcome these challenges. The mining sector offers hope for revival of the manufacturing sector, although this may take a while to achieve.

"This revival could see employment levels rising again, thus boosting medical aid membership," said Kuipa.

CIMAS

Source: FinGaz