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Discovery Health Medical Scheme’s strong financial performance affirms its position as industry leader in funding healthcare and enhancing the healthcare system to benefit its members and stakeholders

Discovery Health Medical Scheme’s strong financial performance affirms its position as industry leader in funding healthcare and enhancing the healthcare system to benefit its members and stakeholders

Insight into Scheme performance and financial results for the year ended 31 December 2015.

17 May 2016 -Discovery Health Medical Scheme released its financial results for the year ended 31 December 2015. Commenting on these results, Milton Streak, Principal Officer of Discovery Health Medical Scheme says, “Despite slow economic growth and a difficult economic environment, it has been a year of positive performance for the Scheme. The Scheme is firmly in a position to continue leading the industry in the funding of evidence-based, cost-effective healthcare and in supporting the development of the healthcare system for our members and stakeholders.”

Streak will report on its management, performance, initiatives and objectives at the Annual General Meeting (AGM) in June 2016.

“Our governance structures ensure independence and compliance with all laws and standards. The performance in 2015 has once again provided evidence of the effectiveness of the Scheme in all areas, and in pursuing our strategic objectives, which are focused on ensuring long-term sustainability,” says Michael van der Nest, Chairperson of the Board of Trustees.

Adding to this, Streak says, “To achieve our objectives, the Scheme must manage its relationships with all of its stakeholders in a way that balances expectations. Our approach is to engage on the basis of working towards a common purpose to optimise value and ensure access to affordable, quality healthcare, now and in the future.”

Along with analysis that confirms Discovery Health Medical Scheme remained the most affordable across the entire spectrum of healthcare plans available in the open medical scheme market on a like-for-like basis, the Scheme in 2015 also saw:

  • Reserves increase to a significant R12.9 billion, with a solvency ratio of 26% of total annual contribution income. This significant reserve level enhances the claims-paying ability of the Scheme. In recognition of this ability to pay claims, independent credit rating agency Global Credit Ratings confirmed the Scheme’s AA+ credit rating for the 15th consecutive year.
  • Administration fees below the industry average for open medical schemes. The fee increases have been contained to consumer price inflation minus 0.5% in 2015 and reduced from 8% of gross contribution income in 2014 to 7.8% in 2015.
  • Excellent membership growth as the Scheme’s share of the open medical scheme market increased to approximately 53% in 2015.

These and other results will be shared with attendees at the AGM of Discovery Health Medical Scheme.

Date: Thursday, 23 June 2016.

Venue: The Hilton Conference Room, The Hilton Hotel, 138 Rivonia Road, Sandton.

Time: Registration from 08:00 and the meeting will start at 10:00.

You can access the 2015 Integrated Annual Report for Discovery Health Medical Scheme here.

Issued on behalf of Discovery Health Medical Scheme

For media related enquiries, please contact Khensani Mthombeni on 011 529 0091or Khensanimth@Discovery.co.za 

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About Discovery

Discovery Limited is a South African-founded financial services organisation that operates in the healthcare, life assurance, short-term insurance, savings and investment and wellness markets. Since inception in 1992, Discovery has been guided by a clear core purpose – to make people healthier and to enhance and protect their lives. This has manifested in its globally recognised Vitality Shared-Value insurance model, active in 27 markets with over 20 million members. The model is exported and scaled through the Global Vitality Network, an alliance of some of the largest insurers across key markets including AIA (Asia), Ping An (China), Generali (Europe), Sumitomo (Japan), John Hancock (US), Manulife (Canada) and Vitality Life & Health (UK, wholly owned). Discovery trades on the Johannesburg Securities Exchange as DSY.

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Felicity Hudson

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