Why a closed medical scheme is your best bet

When it comes to choosing the right medical scheme, the age-old saying “the proof of the pudding is in the eating” couldn’t be more relevant – after all, what you see and what you get can be two very different things. 

Those who have experienced both open and closed medical schemes, long for the great value that closed schemes provide. 

Why closed schemes

Closed medical schemes offer substantial savings, superior benefits, and unmatched financial security at face value – value that is so robust it outstrips bells and whistles like gym memberships and local flights. The consistent value a closed scheme can provide means members are left with more disposable income to save or spend as they choose. Prepare to be impressed by the extraordinary advantages offered by some of the top-tier closed medical schemes. 

Numbers don’t lie

So, let’s look at the figures… Over the past five years, eight of South Africa’s largest open medical schemes have posted an average annual increase of 7.96%. In contrast, the Consumer Goods Medical Scheme (CGMS), formerly Tiger Brands Medical Scheme (TBMS), has maintained a lower average increase of 7.2%. 

The accumulated funds per member demonstrate the financial robustness of closed schemes. While open schemes averaged R22 263 per member, CGMS nearly doubled this amount with an impressive R44 682. This financial strength is further accentuated by the average solvency ratio, where open schemes stand at 38%. In contrast, TBMS achieved a remarkable solvency level of 54%, showcasing its stability. 

As the scheme expands to serve more members, it will be able to leverage economies of scale, further enhancing financial security and offering even greater value to members. This strategic advantage positions a closed scheme like CGMS as a beacon of reliable affordability in the South African healthcare funding landscape. 

Governance and influence

The governance structure of restricted medical schemes, like CGMS, presents another compelling reason to consider a closed medical scheme. Their boards, often composed entirely of employer group representatives, ensure employees’ interests remain a top priority. This level of influence is rare in open schemes, where securing even a single board seat can be challenging for employers who represent the best interest of their employees. Such limitations hinder the ability to shape critical decisions, such as contribution increases and benefit adjustments. 

Furthermore, open schemes frequently experience timing mismatches in their annual increase announcements, which can disruptive. Closed schemes offer a seamless and synchronised communication process, allowing companies to plan with precision and confidence to benefit their employees. 

This alignment protects financial planning and underscores the strategic value of closed schemes in delivering responsive and tailored healthcare solutions. Through effective governance, closed schemes like CGMS exemplify the advantages of prioritising member interests and fostering financial stability. 

Tailored solutions for real needs

CGMS is designed for the consumer goods industry, offering tailored healthcare solutions that benefit individuals and businesses. With this personalised approach, why settle for less when a closed industry scheme like CGMS can offer you and your employees the best? 

In the end, choosing a closed medical scheme isn’t just a smart decision — it makes financial ‘cents’. The benefits are clear, the numbers compelling, and the peace of mind invaluable. 

Make the choice that puts your employees and your bottom line first.