Data provided by iNet BFA
Loading...
See More

Members want probe into Discovery fee

Jul 10 2012 08:31 Sapa

Company Data

DISCOVERY LIMITED [JSE:DSY]

Last traded 96.40
Change -0.65
% Change -0.01
Cumulative volume 208856
Market cap 57.06bn

Last Updated: 22/07/2014 at 10:57. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Discovery bemoans well-off therapy claims

Discovery earnings to climb

Discovery: NHI will boost economy

NHI to bite health insurers' profits

Discovery maintains healthy performance

Discovery posts healthy profits

 

Johannesburg - Members of the Discovery Health Medical Scheme are demanding an independent review of the administrative fees paid to Discovery Health, Business Day reported on Tuesday.

Members also wanted a formal assessment of whether administrative and managed care contracts should be put out to tender.

Discovery Health Medical Scheme had 2.4 million members, accounting for 30% of the market. The scheme's administration fees were the second-highest in South Africa, at R102 per average beneficiary per month.

At the scheme's annual general meeting (AGM) in Johannesburg last month, members passed a resolution asking trustees for a targeted reduction in administration fees over the next three years, according to the newspaper.

Members also asked for a detailed breakdown of the R2.8bn spent on administration costs last year. Trustees were also told to commission an independent review of the value for money provided by Discovery Health.

Discovery Health, owned by JSE-listed Discovery Holdings [JSE:DSY], generates 90% of its operating profit from the scheme.

The scheme's principal officer Milton Streak welcomed the scrutiny and said trustees had resolved at a meeting in November to commission an independent review.

Discovery Health CEO Jonathan Broomberg said the results of the AGM were not communicated to investors because the company did not believe there had been a material change in the risks it faced during the planned review.

He said administration and managed care fees accounted for only 11.7% of the scheme's expenditure.

Monwabisi Gantsho, registrar for the Council for Medical Schemes, the industry's watchdog, welcomed the move to encourage trustees to take a closer look at non-healthcare costs to ensure value for money.

* Find more stories on this and other topics on Facebook and Twitter.

 
discovery holdings  |  medical schemes
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
70 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

How you get trapped by debt

Borrowing money is so quick, so easy - and so deadly, says Susan Erasmus.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...