
Bonitas transition proceeds as administrators outline plans amid legal uncertainty
Sanlam and Momentum outline how they are managing workforce, operations, and risk as the Bonitas transition proceeds despite an unresolved court challenge.

Sanlam and Momentum outline how they are managing workforce, operations, and risk as the Bonitas transition proceeds despite an unresolved court challenge.

Medscheme’s bid to halt Bonitas’ administration transition has been delayed after procedural lapses and unresolved interlocutory issues forced the matter off the urgent roll.

Bonitas, Medscheme, and PHA trade accusations as court papers, whistleblower claims, and a CMS probe intensify the battle over medical scheme contracts.

The scheme and the regulator say a narrowly focused investigation will not halt the transition – but members should brace for some operational changes.

Bonitas’ decision to change administrators comes amid a CMS investigation and High Court proceedings involving its former service provider.

After concluding its section 43 inquiry into Bonitas, the CMS has determined that the allegations merit a further forensic investigation.

Leading open medical schemes have announced increases above the CMS’s guidance, underscoring the tension between regulator calls for restraint and schemes’ funding needs.

Industry leaders such as AlexForbes, Avoir Corporate Healthcare, and Hippo Advisory shone bright at the third annual Top Broker Awards.

After months of speculation, Sanlam has officially partnered with Fedhealth as its exclusive open medical scheme provider.

Downgrading to a lower plan may appear to be a cost-saving strategy, but it frequently results in increased out-of-pocket expenses.

Bestmed states pending rules for low-cost benefit options have further complicated efforts to reduce costs for members.

With major medical schemes reporting average contribution hikes exceeding 9%, members face tough choices in an increasingly unaffordable healthcare landscape.

The Council for Medical Schemes has advised medical schemes to limit their contribution increases for 2025 to 4.4% plus ‘reasonable’ utilisation estimates.

Absenteeism costs South Africa R12bn to R16bn annually, with mental health-related ‘presenteeism’ adding an estimated R235bn a year.

The expected legal challenges to the legislation and the pressure on the state’s finances could delay full implementation of the system for many years.

In 2022, the industry saw a net income of R2.57 billion – down from R12.18bn in 2021 – and faced an operating deficit of R6.155bn, the largest in 23 years.

The Council for Medical Schemes has withdrawn a directive for Discovery to retract its communication about contribution and benefit changes for 2024.