Liberty Medical Scheme (LMS) and Spectramed Medical Scheme
(Spectra)have announced their intention to merge. This merger represents a
significant development within the medical schemes industry bringing together
the strengths of two leading schemes to create a strong market competitor.
The merged scheme is likely to result in one of the largest
and stable open medical schemes providing members with access to market leading
benefits at more competitive rates, and award winning administration services.
The potential merger will be subject to members’ of both
schemes voting their approval, the Council for Medical Schemes and the
Competition Commission’s approval, as well as regulatory compliance with the
requirements of the Medical Schemes Act.
Best of both
“This merger will provide members with the best of breed
from both schemes. The synergy between the two schemes in providing the highest
level of service to members and our focus on providing value to members will
result in a stronger market offering. We will be in a position to enhance what
is an already compelling value proposition to members by combining the first
class benefits offered by both schemes,” says Andrew Edwards, Executive
Principal Officer, Liberty Medical Scheme.
The prospective combined scheme will be in a strong
financial position with healthy reserves, well in excess of the legislated 25%
minimum, and provide cover for approximately 150 000 beneficiaries. This
financial strength clearly demonstrates the combined scheme’s potential to provide
long-term healthcare cover for members and ensures the long-term sustainability
of the merged entity. With the intellectual property inherent in the combined
entity, the scheme will be well-positioned in a competitive market because it
will offer members a range of highly competitive benefits, the leading managed
care and services already offered by Liberty Health, and the Liberty Own your
Life Rewards programme.