The Council for Medical Schemes (CMS) has just published its quarterly report for the period ended 30 June 2019. With the task to supervise a massive and very important industry comprising more than 80 medical schemes registered in the country, and vision to promote vibrant and affordable healthcare cover for all, it is vital to share key trends of the financial performance and soundness of medical schemes.
Accumulated funds and solvency levels
The report shows that the overall industry average solvency level declined by 3.4% from the audited solvency level of 34.5% at 31 December 2018 to 33.4% at 30 June 2019. The total reserves per Regulation 29 for all medical schemes amounted to R 68.8 billion at 30 June 2019, which was 3.6% higher than the reserves of R 66.4 billion as at 31 December 2018.
Membership, age distribution and pensioner ratio
|●||The total number of principal members of registered medical schemes increased by 0.4% from 4 039 705 at 31 December 2018 to 4 056 518 at 30 June 2019.|
|●||The number of total beneficiaries increased slightly by 0.1% from 8 916 695 at 31 December 2018 to 8 925 279 at 30 June 2019.|
|●||The industry average age for all registered schemes for the period ended 30 June 2019 was 33.4 years, which is similar to the 33.1 years as at 31 December 2018.|
|●||The proportion of pensioners for the period was 8.7%; an increase from 8.5% as at 31 December 2018.|
Contributions and relevant healthcare expenditure
|●||The gross contribution per average beneficiary per month at 30 June 2019 of R 1 927.7 went up by 6.5% from R 1 809.2 at 30 June 2018.|
|●||Total risk contribution income of R 93.4 billion was 0.3% lower than budget, but 7.4% higher than the R 86.9 billion at the end of June 2018.|
The total non-healthcare expenses for all medical schemes amounted to R 8.1 billion for the period ended 30 June 2019, which was 6.2% lower than the R 8.7 billion budgeted for and 3.3% higher than the R 7.9 billion at the end of June 2018.
At 30 June 2019, the industry averages of the various components of non-healthcare expenses expressed as a percentage of total non-healthcare expenses were as follows:
|June ‘19||Dec ‘18|
|Broker service fees (including distribution costs and broker fees)||14.8%||14.9%|
|Net impairment losses: trade and other receivables||1.2%||2.0%|
Click here to download the CMS Quarterly report that also includes data on operating results and investments.