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HOW MEDICAL SCHEMES FARED LAST YEAR THROUGH THE PANDEMIC
The Annual Report of the Council for Medical Schemes details the effects of the Covid-19 pandemic on claims experience as well as measures put in place to help struggling consumers. THE medical schemes industry processed Covid-19 claims to the value of R10.1 billion in 2020, according to the recently released Council for Medical Schemes (CMS) Annual Report for 2020/21. There were 422 894 members of medical schemes infected with Covid-19 in 2020, and out of that number, there were 383 585 recoveries, representing a mortality rate of 3.02%. These numbers are based on data from 73 schemes, representing 99.84% of medical scheme beneficiaries.
REGULATING DURING A PANDEMIC In various concessions to schemes, the CMS allowed for the use of personal medical savings accounts to offset contributions, the relaxation of credit policies, contribution holidays and lower future contribution increases. As a result, 19 914 members were granted contribution deferrals to the value of R586.9 million, while 16 654 members received relief through their personal medical savings accounts to the value of
R180.11 million. The CMS also extended a hand to small, medium and microsized enterprises (SMMEs) with less than 200 employees, allowing schemes to make payment arrangements with these businesses to protect their employees’ cover. This allowed 30 725 members to receive relief through rule amendments (the impact was R133.31 million). A further 5 447 members received other types of relief, such as debt policy relaxation to the value of R53.68 million.
