What DHMS pays Discovery for administration services
“Discovery Health Medical Scheme (DHMS) paid R5.389 bn to Discovery Health in administration expenses last year,” reported MoneyWeb (21 June 2021). Administration fees comprised 7.23% of gross contributions last year (2019: 7.38%), while managed care fees were 2.54% of gross contributions (2019: 2.53%).
“Discovery Health also provides administration and managed care services to another 18 restricted schemes , covering over 3.5 m medical scheme members. DHMS notes in its annual report that its ‘gross administration expenditure is the seventh lowest [as a percentage of gross contribution income] out of 20 schemes in the open scheme market’. The average administration fee per member in 2020 was R336.84 -5.25% higher than the prior year, “primarily reflecting the impact of an annual CPI-linked increase”.