Bankmed was established as a restricted medical scheme in 1914, with the aim of servicing the banking and financial services sector (specifically those entities with a banking licence). The scheme provides healthcare funding to more than 30 financial institution groups operating in South Africa, including three of the four largest banking groups. The scheme is administered by Discovery Health (Pty) Ltd.
Bankmed focuses on balancing affordability with reserve utilisation, aiming to grow the membership base without adversely impacting the scheme’s financial sustainability. This is accompanied by claims control measures through tariff negotiation and efforts to contain over-utilisation. The scheme continues to tweak product offerings and limits to enhance attractiveness, especially aiming at targeting new young members. At the same time, emphasis is placed on achieving a balance between low contribution increases and stability in the financial profile. In this regard, Bankmed has maintained a very strong solvency margin and broadly positive operational cash flow generation, which are expected to provide sufficient buffers to absorb a likely uptick in claims frequency over the next 12 to 18 months.
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