The quest for true value in a post-COVID-19 world

Selling healthcare is now more challenging than ever.

Selling medical scheme benefits to younger

healthcare consumers, particularly if a loyalty programme promising a number of attractive extras were part of the deal, used to be pretty straightforward. Life has, however, changed in the past number of months and so have the values of most South Africans.

In a post-COVID-19 world, the need for quality healthcare cover has shot to prominence and, going forward, decisions made when it comes to buying healthcare cover will be based on an entirely different set of rules.

“Financial pressures following a worldwide recession, job losses and reduced working hours have seen many people, particularly younger individuals, tightening their belts while focussing on essentials, including accommodation, food, healthcare and education, while reducing costs such as entertainment and other leisure activities,” notes Josua Joubert, chief executive and principal officer of CompCare Medical Scheme.

“Recent research has shown that many younger individuals are moving back into their parental homes to reduce their expenses. Not only is everyone looking for better value at a more acceptable price, but better healthcare outcomes are seen as being all-important. Furthermore, research has shown that millennials, who will make up 75% of the world’s workforce by 2025, care more about health and other benefits than previous generations. They are also technology-driven and, where possible, would prefer online consultations with healthcare professionals – and we already offer this service at CompCare.”

Younger people who still mistakenly assume that it is safe to go without healthcare cover should note that a National Financial Capability study conducted in the United States has revealed that millennials collectively have more medical debt than elderly baby boomers. This indicates that millennials are also vulnerable to health events.

“Affordability issues are a growing challenge in the private healthcare sector. In the light of current cost pressures being reported globally, affordability challenges are a fact of life for individuals the world over. People are hard pressed to find lasting value when it comes to the delivery of affordable healthcare, particularly in the current financial climate.

“In times of uncertainty, one of the greatest attributes that any medical scheme could offer its members is the ability to innovate to such a degree that value can be created from even the lowest of healthcare budgets. Everyone is looking for a low-cost option that is not only affordable but also sustainable, and we believe we have developed a solution that more than fulfils this need,” asserts Joubert.

Healthcare actuary and managing director at 3ONE Consulting Actuaries, Carl Yssel, adds that since its introduction to CompCare’s product suite in 2017, UniSave has fast become one of the most popular products on offer in that price range and market segment.

“Appealing to young members, the option includes unlimited hospitalisation, and a medical savings account set at the maximum permissible level of 25%. This out-of-hospital flexibility has seen the option grow significantly since inception, while maintaining a positive financial performance. Given these good results, the scheme continually focuses on enhancing benefits and securing the lowest contribution increases possible.

“Based on 3ONE’s benefit richness modelling, UniSave provides value in excess of its contribution point. Our research has shown that, while the industry average richness fluctuates between 80% and 100%, UniSave is positioned well above the average, at 103.3%. Combined with a low price point, the option is highly competitive,” notes Yssel.

GRAPH 1: BENEFIT VALUE INDEX BY PLAN

CompCare is not only conscious of the importance of keeping healthcare affordable and accessible, says Joubert, but seeks to facilitate the delivery of topquality care. Packaged to adapt to the individual needs of every medical scheme member, CompCare is highly focused on providing service excellence at a price that is right,” he adds.

Josua Joubert, CEO and Principal Officer, CompCare Medical Scheme