Results of the Remedi benchmark analysis
Willis Towers Watson, a leading global advisory company, recently benchmarked Remedi Medical Aid Scheme (Remedi) against other medical schemes. They conducted a contribution and benefits comparison of the following open and restricted membership schemes:
- Open-membership: Discovery, Bonitas and Sizwe medical schemes
- Restricted-membership: Bankmed, Netcare, Wooltru and SA Breweries (SAB) medical schemes
The analysis used the 2017 benefits and contributions, as well as the Council for Medical Schemes’ (CMS) annual report for 2015/2016.
Demographic and financial information
The table below compares the demographic and financial information for Remedi and the seven medical schemes included in the benchmark analysis. The information is taken from the 2015 to 2016 Annual Report published by the Council for Medical Schemes. The demographic information is as at 31 December 2015, and the financial results are for the year 2015.
| Remedi | Discovery | Bonitas | Sizwe | Bankmed | Netcare | Wooltru | SAB | |
| Demographic information | ||||||||
| Principal membership | 20 849 | 1 267 877 | 295 488 | 52 317 | 107 553 | 17 682 | 9 890 | 9 795 |
| Beneficiaries | 46 815 | 2 691 852 | 654 384 | 125 366 | 216 262 | 38 614 | 19 520 | 21 969 |
| Beneficiary ratio | 2.2 | 2.1 | 2.2 | 2.4 | 2 | 2.2 | 2 | 2.2 |
| Average age (beneficiaries) | 29 | 32.9 | 31.6 | 32.7 | 30.4 | 29.1 | 29.5 | 29.1 |
| Pensioner ratio | 4.70% | 7.80% | 6.20% | 7.80% | 7.30% | 3.60% | 5.50% | 4.70% |
| Financial information (Rpbpm) | ||||||||
| Risk Contribution Income (RCI) | R1 369.00 | R1 240.00 | R1 345.00 | R1 532.00 | R1 321.00 | R1 338.00 | R1 202.00 | R1 256.00 |
| Net healthcare spend | R1 239.00 | R1 068.00 | R1 265.00 | R1 353.00 | R1 273.00 | R1 319.00 | R1 139.00 | R1 192.00 |
| Non-healthcare spend | R83.00 | R157.00 | R143.00 | R170.00 | R106.00 | R68.00 | R103.00 | R96.00 |
| Net healthcare result | R47.00 | R16.00 | R-63.00 | R9.00 | R-58.00 | R-49.00 | R-41.00 | R-32.00 |
| Key Ratios: | ||||||||
| Healthcare spend as % of RCI | 90.50% | 86.10% | 94.10% | 88.30% | 96.40% | 98.60% | 94.80% | 94.90% |
| Non-healthcare spend as %of RCI | 6.00% | 12.60% | 10.60% | 11.10% | 8.00% | 5% | 8.60% | 7.60% |
| Net healthcare result as % of RCI | 3.40% | 1.30% | -4.70% | 0.60% | -4.40% | -3.70% | -3.40% | -2.50% |
| Solvency ratio | 72.30% | 26.00% | 26.10% | 46.80% | 42.50% | 34.30% | 65.00% | 80.30% |
| Member growth | 3.30% | 3.00% | -.60% | 3.20% | 7.50% | 3.10% | 5.90% | 3.30% |
| Number of benefit options | 3 | 15 | 7 | 5 | 6 | 1 | 3 | 2 |
Summary of results
For the purposes of this exercise, a benefit option was selected within each of the benchmark schemes that is closest to each of the three Remedi options in terms of benefits and contributions. These options were then used for the benchmarking exercise:
| Option | Remedi | Discovery | Bonitas | Sizwe | Bankmed | Netcare | Wooltru | SAB |
| Top option | Comprehensive | Classic Comprehensive | Classic | Full Benefit | Comprehensive | Netcare Savings | Extended | Comprehensive |
| Middle option | Classic | Classic Delta Saver | Complete | Affordable Care | Traditional | Netcare Savings | Plus | Comprehensive |
| Bottom option | Standard | Keycare Plus | Primary | Gomomo Care | Basic | Netcare Savings | Core | Essential |
The table below shows how seven other medical schemes score against Remedi (Better than Remedi or Poorer than Remedi):
| Discovery | Bonitas | Sizwe | Bankmed | Netcare | Wooltru | SAB | |
| Comprehensive: | |||||||
| Hospital benefits | Better | Poorer | Poorer | Poorer | Poorer | Better | Poorer |
| Medicine benefits | Better | Poorer | Poorer | Equivalent | Poorer | Poorer | Poorer |
| Routine benefits | Better | Poorer | Better | Poorer | Poorer | Better | Poorer |
| Contributions | Poorer | Poorer | Poorer | Better | Better | Poorer | Better |
| Classic: | |||||||
| Hospital benefits | Better | Better | Better | Better | Better | Better | Better |
| Medicine benefits | Poorer | Poorer | Poorer | Better | Poorer | Poorer | Poorer |
| Routine benefits | Better | Better | Better | Better | Better | Equivalent | Better |
| Contributions | Better | Poorer | Poorer | Poorer | Poorer | Better | Poorer |
| Standard: | |||||||
| Hospital benefits | Better | Better | Better | Better | Better | Better | Poorer |
| Medicine benefits | Equivalent | Better | Poorer | Equivalent | Not comparable | Better | Not comparable |
| Routine benefits | Better | Not comparable | Equivalent | Poorer | Better | Poorer | Not comparable |
| Contributions | Poorer | Poorer | Poorer | Poorer | Poorer | Poorer | Better |
- The Remedi Comprehensive option is similar in cost to the other benchmarked schemes and generally offers better hospital, medicine and routine benefits.
- The Remedi Classic option costs less than most of the equivalent options, but this is offset by its less generous hospital and routine benefits.
- The Remedi Standard option is competitively priced, but this is offset by its less generous hospital benefits.