Wrap Text
Discovery Launches Health Plans With Comprehensive Cover At Substantially
Reduced Rates
PRESS RELEASE
DISCOVERY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/007789/06)
ISIN: ZAE000022331
Share Code: DSY
In line with the fundamental principles of consumer driven health care,
Discovery Health, South Africa"s leading health care cover provider, has
launched a series of innovative new plans which allow members comprehensive
cover at significantly lower premiums.
The company has also announced an average annual rate increase of 13,3% which
has maintained Discovery Health"s pattern of sustainable increases which have
not exceeded 14,8% over the past five years, according to Adrian Gore, CEO of
Discovery. In addition, members who fund their Medical Savings Account at the
appropriate level next year will experience an even lower increase - an average
member will pay just 6,1% more for their cover in 2004 than they paid in 2003.
"Thanks to the high reserves accumulated through the Medical Savings Account
(MSA), one in four members will not experience a rate increase going into 2004,
while many will be able to reduce their MSA contributions without affecting the
level of benefits," Gore adds.
The announcement of new plans, which coincided with the introduction of new
Vitality and KeyClub partners, adds a new dimension to the Discovery Health
model.
According to Gore, the new plans, the Discovery Priority Series, hinge on three
core principles:
- providing cover for uncontrollable hospital events and comprehensive day-to-
day expenses;
- member empowerment; and
- a specific out of pocket payment on 13 defined surgical procedures.
Consequently, says Gore, the company has been able to reverse an industry trend
which has seen many people opt for less cover, leaving them vulnerable to
unexpected medical expenses.
"The general market trend, in response to spiraling medical costs, has been for
medical schemes to increase premiums while carving away at benefits. As a
result, the standard has now become a hospital plan, with some form of savings
account, offering very little out of hospital coverage. This often leaves
members with inadequate cover to cater for their health care needs," he
explains.
The new series comprises the Classic Priority and Essential Priority Plans on
the one hand and the Medi-Clinic Priority Plus Plan on the other. Both make
comprehensive cover more affordable to members.
Contributions to the Discovery Priority Series are substantially lower than the
traditional comprehensive cover plans, yet cover is almost as extensive. For 25%
less in premiums, members of the Classic and Essential Priority Plans will
receive similar coverage patterns relative to what they have been paying for
comprehensive cover.
For a very low increase, approximately 10% or less, members on the Core Plan -
which, by comparison, has potentially high financial exposure for the member -
can switch to the Priority Series Plan, which provides comprehensive cover.
The Priority Series Plan provides members with a list of 13 manageable hospital
procedures, such as a colonoscopy or a hip replacement, clearly indicating the
amounts, ranging from R1000 to R5000, that they would have to pay upfront, out
of their own pocket, should they undergo any of these procedures.
The Medi-Clinic Priority Plus Plan offers the most extensive cover at the most
competitive rates.
"In a ground-breaking move, we have partnered with the Medi-Clinic private
hospital group to extend the range of quality health care cover available to our
traditional market. The use of the Medi-Clinic network is an example of our
commitment to providing cost-effective, comprehensive health care cover by
leveraging the power of the Discovery member base," says Gore.
The Plan provides members with comprehensive hospital and day-to-day benefits
within the Medi-Clinic network, whereby even specialist consultations and day-to
day out of hospital visits within the network will be covered at full cost. (The
co-payments on the list of 13 procedures applies to this plan as well.)
The Medi-Clinic Priority Plus Plan offers dramatically enhanced coverage, while
the premium is 33% less than an equivalent comprehensive plan.
Gore believes that Discovery has been successful over time in managing costs and
maintaining the affordability of cover through innovations such as the Medical
Savings Account, and Vitality and KeyCare Plans.
"Since our inception we have realised that people needed comprehensive
protection from their medical scheme for extreme events and more flexible cover
for more frequent, less extreme events. We introduced the Medical Savings
Account (MSA) to cover and empower members for these day-to-day benefits and
combined it with carefully managed protection for more serious events. By adding
Vitality to this powerful combination, we have managed to make our members
healthier and further contain costs."
In line with its philosophy of sustainable health cover, this year"s rate
increase of 13,3% is well within what Gore refers to as the `Discovery Certainty
Corridor", a containment of its annual increases between a narrow range of 12%
to 14.8% over the last five years.
Key factors in maintaining a relatively low rate of increase include cost
efficient administration, well managed health care cover and the effect of
member empowerment through the Medical Savings Account.
Ends.
FOR FURTHER INFORMATION PLEASE CONTACT:
Rosemary Renton/Hans Venter/Marianne Hodge
Corporate Communications Consultants (Pty) Ltd
Tel: (011) 783-8926 Fax: (011) 783-7608 / 083 365 5152
E-mail: hansv@corpcom.co.za
On behalf of: Adrian Gore - CEO of Discovery
Contact: (011) 529 2808
9 October 2003
Date: 10/10/2003 01:03:38 PM Supplied by www.sharenet.co.za
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