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Momentum Health has become the fifth largest medical scheme in South Africa with the transfer of Ingwe Health Plan to Momentum Health medical scheme, recently approved by the Registrar of the Council for Medical Schemes (CMS).
Commenting on the transfer, Lee-Ann du Toit, Chief Marketing Officer of Momentum Medical Scheme Administrators points out that the amalgamation of the two schemes is an extremely positive development that enhances Momentum Health’s overall market positioning, now serving the needs of more than 90 000 principal members.
Since the transfer took place the Scheme not only boasts an increase in membership numbers, but benefits from a reduced age profile and pensioner ratio, which in turn positively impact the Scheme’s future sustainability.
"Together the two schemes achieve greater economies of scale, setting the platform for an even stronger scheme that is better-positioned as a more influential industry player going forward. The Scheme now has a greater risk pool and combined reserves, which bears good news for its members. As Ingwe Health Plan, like Momentum Health, is administered by Momentum Medical Scheme Administrators (MMSA), the transfer was completely seamless."
"The combined scheme brings about mutually favourable advantages while ultimately offering a greater choice in contribution rates, and a wider range of benefit options, a combination that has long been the hallmark of Momentum Health’s value proposition to its members. Members of the two schemes now have the assurance of knowing that Momentum Health operates from an enhanced position of strength in terms of membership and long-term sustainability. Going forward, the Scheme will become an increasingly strong and competitive brand," Du Toit said.
In the past decade, the consolidation of the medical schemes industry has to a large extent been driven by the Medical Schemes Act. The CMS has furthermore articulated the view that market consolidation is desirable in many instances, resulting in larger and, consequently, the improved stability of risk pools in merged entities.
"The vision of the combined scheme is to be the open scheme of choice for all South Africans, ensuring access to cost-effective healthcare for its growing pool of members," Du Toit concluded.
(Momentum Health, October 2010)
