A survey of medical schemes by Alexander Forbes found that 50% of schemes enjoyed an operating profit in 2001, up from 40% in 2000 while 70% experienced a net profit when taking into account investment income and net transfers, up from 50% in 2000.
The survey, conducted by Board of Healthcare Funders (BHF) and Alexander Forbes Health Care Consultants, found that while accumulated funds per member increased overall in rand terms, the increase was insufficient to compensate for the increase in contributions, resulting in a decrease in the average statutory solvency ratio from 9.9% to 8.7% of gross annual contributions.
Only four of the ten schemes met the interim statutory solvency ratio target of 13.5% at the end of 2001, the survey found.
Four of the ten schemes implemented interim contribution increases and some of these were coupled with benefit reductions (four of the ten have also announced interim contribution increases since 1 January 2002, it adds).
The survey found that only Discovery Health, Bonitas and Medshield increased their membership in 2001. Discovery Health, the largest open scheme, grew exponentially and now covers in excess of one million lives (principal members grew by 39% to 416 000).
Bonitas, the second largest open scheme, has 248 000 principal members, and Medihelp, the third largest open scheme, has 110 000 principal members.
The findings indicate an ageing membership, with the average member age increasing by 0.4 years to 30.6 for all beneficiaries and by 0.4 years to 42.2 for adult beneficiaries, and the pro-portion of members aged 65 or older increased marginally to 5.3% (2000: 5.2%).
Other findings were that the average gross contribution (including savings) increased by 17.3%, while the average savings contribution increased by 21.9%. The average gross claims paid (including claims paid from savings) increased by 11.4%, while average operating expenditure and savings contributions, combined, increased by 12.7%.
A statement with the survey said that the discrepancy between the 17.3% increase in contributions and the 12.7% increase in expenditure can be explained "by the attempt to "catchup", as significant operating losses were experienced in the previous year".
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