Bank could quit Bankmed over 10% hike

One of Namibia&#039;s largest banks has allegedly indicated that it will withdraw its employees from its medical aid fund should a 10% increase in monthly contributions take effect on 1 July. According to officials, First National Bank (FNB) Namibia has apparently made it clear that it does not accept the increase from Bankmed and that it will instead withdraw from the fund. According to sources, if the country’s largest bank ditches Bankmed, the medical aid fund - which is already reeling - will be forced to liquidate. No decision has been taken yet in this regard, but it is expected that clarity will be provided at the fund’s annual general meeting slated for next month. FirstRand Namibia chief marketing officer Tracy Eagles said FNB Namibia is aware of the situation at Bankmed and internal consultations have kicked off at the bank. “We’re are looking at our options and will do what’s in the best interest of our employees. We have already held meetings with our staff in this regard and more internal engagements are ongoing, but the bottom line is that we will do what is best for our employees,” she said yesterday.Reserve level dwindlesThe 10% increase by the medical aid fund is one of several measures to try to ensure Bankmed&#039;s sustainability, whose reserve level stood at only 10% on 31 March. The Namibian Financial Institutions Supervisory Authority (Namfisa) requires that medical aid funds have a solvency rate and reserve level of at least 25%. Over the past six years, Bankmed&#039;s level has fallen from 53% to 16% last year and the current 10% by the end of March. The biggest reasons for this were the overuse of benefits by members and providers of health services that were higher than the budget expectation.Apart from the 10% increase, another measure is a possible transfer of all Bankmed members to one of the open medical aid funds in Namibia, amongst other things.Bankmed appointed Prognosys Actuaries and Consultants to carry out an independent evaluation of the sustainability of the fund and give advice on the viability of transferring members to another fund.Other measures include the adjustment of benefits with increased co-payments, paying out all benefits for the rest of the year pro rata, as well as the implementation of a co-payment for medication for pensioners.Don’t panicIn a letter to Bankmed members dated 22 May, the fund - through its chief officer Elize Fahl and chairman André Smit - said employer groups have set up a committee of representatives who are in discussion with the board of trustees. The measures were put in place after consultation between the council and the representatives. The letter emphasised that there is no reason for members to panic, nor is there any reason to try to claim for unnecessary medication because all claims will be paid out.Claims are also closely monitored by the board of trustees to curb overuse, fraud, waste and abuse, it said.It further warned that any claims identified as the above will not be paid out, while an investigation will be carried out. The employer group will be notified, while the fund will take appropriate action against the member or service provider."It is important that members consider their medical claims and show care when they decide to visit a service provider or health facilities or claim for medication. This is to ensure that only those that are a medical necessity are carried out or dispensed," the letter stated.Warning lightsThe Namibian Association of Medical Aid Funds (NAMAF) earlier warned that warning lights are flashing for funds because more money is being spent on claims compared to the contributions collected over the last six months in the last quarter of 2022 and the first quarter of this year.According to Uatavi Mbai, NAMAF&#039;s manager for corporate communications and stakeholder relations, the current experience is that medical aid funds continue to turn to their reserves to finance healthcare benefits that are not sustainable in the medium- or long-term.- henriette@republikein.com.na

Bank could quit Bankmed over 10% hike

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Namibian Sun 2024-11-26

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Bank could quit Bankmed over 10% hike

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Namibian Sun 2024-11-26

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