2016 AGM well attended!

The 2016 LA Health Annual General Meeting was held in Port Elizabeth at the Newton Park Library Auditorium on 22 June 2016. It was attended by 98 Scheme members and 14 observers.

Those present noted the following excellent performance of LA Health during 2015.

Following strong growth of 9.07% to 122 590 members in 2014, LA Health experienced another year of strong membership growth with the average number of members increasing by a further 10.36% to 135 287 at the end of December 2015.

The growth in the number of members resulted in an increase in gross contributions received. The reserve ratio increased from 35.09% in 2014 to 37.40% at the end of 2015. In real terms the Scheme had R877 million in reserve at the end of 2015, higher than the R718 million at the end of 2014.

The Scheme’s risk contribution income was R1.91 billion with a net risk claims experience of R1.58 billion.  This resulted in a net healthcare result (before investment income) of R108 million for the year, compared to R131 million in 2014. After investment gains the Scheme’s total comprehensive income for 2015 was R158 million. Non-healthcare expenses used 9.57% of the total gross contributions, marginally up from 2014.

At the end of 2015, there was R181 million of member’s Medical Savings Account funds in a “trust” bank account. This included the interest of R10.7 million that was earned in that account during the year. In 2015, the Scheme paid claims to the value of R410 million on behalf of members from their Medical Savings Accounts.