The Competition Tribunal of South Africa unconditionally approved the large merger between Bonitas Medical Fund and Nedgroup Medical Aid Scheme (NMAS).<\/p>\n
Bonitas is an open medical scheme while NMAS operates as a closed medical scheme with membership restricted to employees and retirees of Nedbank and Old Mutual Insure.<\/p>\n
Lee Callakoppen, principal officer of Bonitas, said: “The amalgamation will ensure that NMAS members become part of a large, sustainable medical scheme and further entrench Bonitas\u2019 role as a leader in the healthcare market.<\/p>\n
“Over the past few years, various developments in the healthcare industry have led to a series of consolidations and amalgamations among schemes, a trend that is expected to continue. As a key player in the industry, with a wide range of options tailored to meet the needs of South Africans, Bonitas is positioned as the ideal amalgamation partner.”<\/p>\n
Earlier this year the Boards of Trustees of NMAS commissioned preliminary investigations into a possible amalgamation opportunity through an independent actuary. The positive outcomes of the initial feasibility studies provided sufficient motivation for the NMAS Board to explore an amalgamation process.<\/p>\n
The Bonitas and NMAS product offerings will remain unchanged for the rest of 2021 with NMAS members being migrated to Bonitas from January 2022.<\/p>\n
Callakoppen noted that NMAS has over 47,000 beneficiaries, adding that the membership is ‘encouraging’.<\/p>\n
He said that the benefits of the amalgamation are numerous. Bonitas is South Africa\u2019s second-largest open medical aid with financial indicators above the legislated requirements and industry average. The Scheme has one of the highest credit ratings in the industry, which is synonymous with a high claims-paying ability and stability, in turn ensuring members access to quality healthcare.<\/p>\n
The newly amalgamated scheme will have a broader national footprint and better economies of scale to negotiate favourable rates and improve provider networks, Callakoppen said.<\/p>\n