Bonitas’s New Administrator is Momentum Health Administrators

Bonitas has ended its 40-year relationship with Medscheme, appointing Momentum and Private Health Administrators (PHA) to take over the contracts for administration and managed care services, excluding its Boncap option. This decision is expected to negatively impact Medscheme and its parent company, Afrocentric. Bonitas has a large membership base of over 374,000 principal members and about 750,000 beneficiaries.

The change was driven by regulatory requirements for continuous benchmarking and the belief that evergreen contracts don’t benefit members. Medscheme’s attempt to prevent Bonitas from tendering for a new administrator was unsuccessful. The Council for Medical Schemes initiated a forensic investigation into Bonitas, focusing on the appointment of PHA to administer Boncap.

Momentum was awarded the administration contract, and PHA received the managed care contract. Bonitas initiated a review process to assess various companies’ services in anticipation of Medscheme’s contract ending, aiming to lower non-healthcare costs for members.

Medscheme, which currently has 14 medical scheme clients including GEMS, initiated legal proceedings against Bonitas due to concerns over ethical, contractual, and statutory obligations, heightened by media reports alleging governance failures and procurement irregularities.

Sources:
https://www.medicalbrief.co.za/bonitas-cuts-ties-with-medscheme/

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