Discovery not the only medical scheme losing members
The number of members and beneficiaries on the Discovery Health Medical Scheme (DHMS) declined by 2% in 2020, with sharp declines in the number of members on the scheme’s top-end medical aid plans. In the last five years, the scheme’s Executive, Comprehensive and Priority plans have lost 29% of their members.
Read: Even in the pandemic, Discovery Health members ditch pricier plans
The decline in members and beneficiaries in 2020, even as the Covid-19 pandemic raged on, is not surprising given the economic impact of the various lockdowns.
Hundreds of thousands of well-paying jobs were lost and many people were forced to take salary cuts. Small businesses were particularly hard-hit and some people were faced with no other option but to cancel their medical aids.
Data from the Council for Medical Schemes published this month shows that open schemes lost over 64 000 members in 2020, with a decline of 105 775 in beneficiaries.
Out of the five largest schemes (DHMS, Bonitas Medical Fund, Momentum Medical Scheme, Bestmed Medical Scheme and Medihelp), only one – Bestmed – reported an increase in members in the year. Together, these five schemes comprise 86% of the open scheme market.
| Open medical scheme members as at 31 December | 2020 | 2019 | Change |
| Bestmed Medical Scheme | 97 335 | 95 044 | 2.4% |
| Bonitas Medical Fund | 333 141 | 338 751 | -1.7% |
| Cape Medical Plan | 4 124 | 4 419 | -6.7% |
| Compcare Wellness Medical Scheme | 19 430 | 21 827 | -11% |
| Discovery Health Medical Scheme | 1 330 513 | 1 351 720 | -1.6% |
| Fedhealth Medical Scheme | 74 494 | 79 815 | -6.7% |
| Genesis Medical Scheme | 9 147 | 9 167 | -0.2% |
| Health Squared Medical Scheme | 18 497 | 20 006 | -7.5% |
| Hosmed Medical Aid Scheme | 20 820 | 21 022 | -1.0% |
| Keyhealth | 33 112 | 32 689 | 1.3% |
| Makoti Medical Scheme | 6 410 | 5 037 | 27.3% |
| Medihelp | 89 056 | 93 517 | -4.8% |
| Medimed Medical Scheme | 5 655 | 6 080 | -7% |
| Medshield Medical Scheme | 75 285 | 79 469 | -5.3% |
| Momentum Medical Scheme | 152 228 | 156 723 | -2.9% |
| Sizwe Medical Fund | 48 213 | 46 935 | 2.7% |
| Suremed Health | 1 042 | 1 145 | -9% |
| Thebemed | 10 922 | 14 078 | -22.4% |
| Total | 2 329 424 | 2 377 444 | -2% |
One can see the impact of job cuts across the economy in the data for restricted schemes.
Only one, the Government Employees Medical Scheme (Gems), saw a material increase in members and beneficiaries. Members were up by 3.3% (24 314) in 2020, while beneficiaries grew by 71 463 (3.8%).
Overall, members of restricted schemes increased by 0.5% (or 8 205) in the year, with beneficiaries up 1.2% (nearly 49 000).
In the banking sector, Bankmed and the Nedgroup Medical Aid Scheme together lost 3 000 members (a 2.5% decline from the prior year).
| Restricted medical schemes (selected) | 2020 | 2019 | Change |
| Government Employees Medical Scheme (GEMS) | 750 935 | 726 621 | 3.3% |
| South African Police Service Medical Scheme (POLMED) | 174 447 | 176 981 | -1.4% |
| Bankmed | 106 467 | 108 770 | -2.1% |
| Profmed | 35 831 | 34 553 | 3.7% |
| SAMWUMed | 34 403 | 33 313 | 3.3% |
| Sasolmed | 28 953 | 29 390 | -1.5% |
| Nedgroup Medical Aid Scheme | 26 740 | 27 507 | -2.8% |
| Chartered Accountants (SA) Medical Aid Fund (CAMAF) | 25 646 | 25 528 | 0.5% |
| Old Mutual Staff Medical Aid Fund | 17 552 | 18 195 | -3.5% |
| Netcare Medical Scheme | 17 018 | 17 642 | -3.5% |
| Impala Medical Plan | 12 708 | 12 571 | 1.1% |
| Massmart Health Plan | 11 976 | 12 607 | -5% |
| South African Breweries Medical Aid Scheme (SABMAS) | 11 352 | 11 876 | -4.4% |
| Lonmin Medical Scheme | 11 272 | 11 654 | -3.3% |
| Glencore Medical Scheme | 7 385 | 8 272 | -10.7% |
| Pick n Pay Medical Scheme | 7 098 | 7 616 | -6.8% |
| Imperial and Motus Medical Aid | 6 782 | 7 460 | -9.1% |
| Tsogo Sun Group Medical Scheme | 4 669 | 5 166 | -9.6% |
| Tiger Brands Medical Scheme | 4 542 | 4 652 | -2.4% |
| Barloworld Medical Scheme | 4 249 | 5 054 | -15.9% |
| Naspers Medical Fund | 3 543 | 3 547 | -0.1% |
| TFG Medical Aid Scheme | 3 029 | 2 965 | 2.2% |
The number of schemes declined by a further three in 2020 as the trend of consolidation continued.
In open schemes, Topmed Medical Scheme amalgamated with Fedhealth Medical Scheme and Selfmed Medical Scheme with Compcare Wellness Medical Scheme towards the end of 2019. The closed Grintek Electronics Medical Aid Scheme amalgamated with Bestmed in 2020.
This trend has been in place for the last decade. The council says the number of medical schemes decreased from 144 in 2000 to 76 in 2020.
Listen to Fifi Peters’s interview with Profmed CEO Craig Comrie (or read the transcript here):
Source: moneyweb.co.za
