Announcing a weighted average annual contribution increase of 8.3% for 2018, Momentum Health cited stability and growth in terms of its financials, product and service offerings in a challenging industry landscape.
Over the last six years, Momentum Health averaged one of the lower increases year on year, compared to the other large open schemes, which is significant considering the scheme has also avoided having to use benefit reductions annually to achieve lower contribution increases.
Momentum Health remains the third largest open medical scheme with over 150 000 principal members. The scheme continues to grow in a highly competitive market that has been stagnant for the last couple of years. Boasting one of the most enviable membership profiles in the industry, with an average beneficiary age of 32.7 years and an average principal member age of 42.1, the scheme attracts young members, which contributes to a solvency level of 25.6%, which has been consistently over the regulatory requirement of 25% for the last five years. As is indicated by regulatory frameworks, solvency is identified as a key benchmark for the sustainability of a scheme, giving members the necessary reassurance of claims payment ability.
Commenting on this year’s updates, Damian McHugh, Head: Health Marketing for Momentum said, “Our approach and thinking challenged the conventional way medical schemes had been designed. For example, members are allowed flexibility of choice to structure their medical scheme options to suit their needs and in line with their affordability. Our members have saved over R1.5 billion over the last four years by making use of selected provider networks”. While some medical schemes have implemented similar efficiency discounted options, the manner in which Momentum Health offers these in the market is unique.
McHugh continues, “Some of our key design motivations were born from the thinking that we wanted a tool that could reward members for doing the right thing; making small changes in behaviour, leading towards healthier, more active lives. Momentum HealthReturns, coupled with Multiply, Momentum's wellness and rewards programme, encourages and rewards members who want to start doing the right thing - making small changes in their lives to become healthier and more active in the long run. By adding Momentum HealthSaver, members can maximise and multiply the funds available for their day-to-day healthcare needs”.
The HealthReturns programme has been updated for 2018, and will now be linked to the contributions members pay to their medical scheme.
Newly introduced this year, the optional Multiply Money Visa Card will be an easier way for members to access funds in their HealthSaver accounts. This card provides members with the convenience of paying providers instantaneously at the doctor's rooms, purchasing over the counter medications, and even paying for pets’ visits to the vet (subject to funds available in one’s HealthSaver account). This small enhancement will lead to an even greater financial wellness outcome, allowing Momentum clients the ability to manage their money into the future. The Multiply Money app can be linked to a member’s bank account, giving them an easily accessible and consolidated view of their finances.
Momentum has seen significant growth in their low income insurance offering, Staff Care Solutions, and has made benefit enhancements to this offering for 2018.
McHugh concludes, “Momentum Health, combined with the Momentum complementary product offerings continues to provide our clients with unmatched value, flexibility, and choice. By maximising our benefits and making small yet committed behavioural changes, savings can go a long way towards enhancing the lifetime Financial Wellness of our clients”.
Momentum Health members can choose to make use of complementary products available from Momentum, such as HealthSaver and HealthReturns. Momentum is not a medical scheme, and a separate entity to Momentum Health.