Bonitas records biggest surplus in its history
Bonitas reported that it ended 2020 with an unprecedented surplus of R1.7-bn. - the largest it has ever reported in its 40-year history. By way of comparison, the scheme only had a surplus of R186.1-m in 2019. The medical scheme said in its 2020 annual report that the significant surplus capacity was systemic within the healthcare industry. Hospitals avoided elective procedures to safeguard their capacity to deal with Covid-19 and members preferred to delay physical interaction with providers. Bonitas CFO Luke Woodhouse said other initiatives taken by the scheme, including proactive risk management, helped bolster the surplus. As the ratio of claims paid relative to premiums collected fell by almost ten percentage points, Bonitas’s reserves reached R6.1-bn, a R1.8-bn surge from 2019. The scheme’s solvency ratio jumped to 32.7% from 24.9%.