South Africa: Liberty Medical Scheme and Spectramed plan to combine forces
Thursday, 27 June 2013: Liberty Medical Scheme (LMS) and Spectramed Medical Scheme (Spectra) are pleased to announce their intention to merge. This merger represents a significant development within the medical schemes industry bringing together the strengths of two leading schemes to create a strong market competitor. The merged scheme is likely to result in one of the largest and stable open medical schemes providing members with access to market leading benefits at more competitive rates, and award winning administration services.
The potential merger will be subject to members’ of both schemes voting their approval, the Council for Medical Schemes and the Competition Commission’s approval, as well as regulatory compliance with the requirements of the Medical Schemes Act.
“This merger will provide members with the best of breed from both schemes. The synergy between the two schemes in providing the highest level of service to members and our focus on providing value to members will result in a stronger market offering. We will be in a position to enhance what is an already compelling value proposition to members by combining the first class benefits offered by both schemes,” says Andrew Edwards, Executive Principal Officer, Liberty Medical Scheme.
The prospective combined scheme will be in a strong financial position with healthy reserves, well in excess of the legislated 25% minimum, and provide cover for approximately 150 000 beneficiaries. This financial strength clearly demonstrates the combined scheme’s potential to provide long-term healthcare cover for members and ensures the long-term sustainability of the merged entity. With the intellectual property inherent in the combined entity, the scheme will be well-positioned in a competitive market because it will offer members a range of highly competitive benefits, the leading managed care and services already offered by Liberty Health, and the Liberty Own your Life Rewards programme.
