Global pandemic highlights importance of medical aid cover

Bonitas to expand benefits and tap into reserves to ensure most members have below CPI contribution increases

The 2022 product line-up from Bonitas Medical Fund includes the use of reserves to keep contribution increases lower, a Benefit Booster to stretch dayto-day benefits, a revised international travel benefit with payment for Covid-19 tests and a contribution towards quarantine costs.

There is also a renewed focus on preventative care, virtual consultations and plans that enable more South Africans to have access to affordable, quality health care.

In a volatile market, Bonitas performed well in the past year, according to principal officer Lee Callakoppen. He attributes this to proactive risk management and prudent board decisions.

“A positive offshoot of the pandemic was an increased appreciation of the importance of medical aid cover which resulted in better-thanexpected member retention and a 2.3% membership growth since January,” he reveals.

The scheme has taken a strategic decision to utilise about R600m of its reserves to ensure 82% of members receive a below CPI contribution increase for the 2022 benefit year.

“The innovative Benefit Booster equates to an increase in day-to-day benefits for members ranging from 16% to 32%, depending on the members’ plan. We believe it is

the largest increase in benefits ever seen in the medical aid industry,” he says.

The average weighted contribution increase across all plans is 4.8% with the BonStart premium decreasing by 7.9%, which can be attributed to the low cost versus benefits ratio and the younger membership profile on the plan. The decrease in contribution is an industry first as was the decision to offer BonFit Select at a 0% increase in 2020.

Callakoppen says there will be 15 plans for the year ahead consisting of traditional, savings, hospital, edge (virtual), network and income-based plans, each carefully crafted with a specific mix of benefits to appeal to various target markets.

Increases range from -7.9% to 6.5%. Bonitas has opted to increase its options which are currently in a growth phase BonSave, BonFit and

BonEssential by only 3.6%.

The Council for Medical Schemes recommended increases in line with CPI of 4.2% with the caveat that financial stability and sustainability of schemes must remain a priority.

“We feel the use of part of our reserves to cushion members against increasing costs is an appropriate strategy,” says Callakoppen.

Other top line changes being introduced in 2022 include an additional virtual plan, BonStart Plus, which is aimed at attracting a new profile of member through a diversified distribution channel and attractive pricing. “Virtual care,” says Callakoppen, “has proven a sound and reliable solution for improving access to quality health care and is now offered across all 15 Bonitas plans.”

Another change is the introduction of a new Oncology Management Programme that utilises a partnership between Medscheme Managed Healthcare and the South African Oncology Consortium to improve the co-ordination of care of oncology patients.

The scheme’s back and neck programme which has a 93% success rate will be offered on a digital platform from 2022. The eDBC app is a technologydriven channel offering digital coaching solutions and home-based care to help improve pain and mobility. It includes a self-assessment, baseline progress checks and outcomes evaluation.

Enhancements on the existing international travel benefit will include a Covid-19 PCR test pre- and post-travel as well as a contribution of up to R1,000 for enforced quarantine.

Bonitas will also be introducing a new personalised wellness and lifestyle programme called AMP on the new Bonitas app. It allows members to access their health information. Callakoppen explains that biometric data, claims and wearable data will be used to regularly update their health score while an avatar will nudge them on the best steps to take to boost their health.

In addition, through a partnership with Nedbank’s AVO app, members can access discounts and deals from more than 7,000 merchants.

Bonitas is currently waiting for approval from the Competition Commission to its proposed amalgamation with the Nedgroup Medical Aid Scheme. The amalgamation should it go ahead will be good news for Bonitas, growing the size of the scheme while at

the same time decreasing its average age and pensioner ratio and bolstering its reserves.

“The future for the scheme remains focused on providing quality health care for members with affordable contributions while still maintaining the financial sustainability of the scheme,” says Callakoppen.

“Our members remain at the heart of our interactions and we actively strive to find ways to amplify value and drive business development.

“Our focus on care, capability and reliability encompasses not only providing our members with the tools and preventative measures to guard against chronic conditions but help us redefine health care for a new world,” he says.

OUR MEMBERS REMAIN AT THE HEART OF OUR INTERACTIONS AND WE ACTIVELY STRIVE TO FIND WAYS TO AMPLIFY VALUE