Liberty, Medicover look to merge by January next year

BUSINESS REPORT

September 15, 2009

By SLINDILE KHANYILE

Liberty Health Medical Scheme and Medicover have proposed a merger from January next year and that would create the fourth largest local medical scheme open to the public, the companies said on Tuesday.

The merger comes as Medicover loses members to the Government Employees Medical Scheme (Gems), the fastest growing medical scheme in the country.

About 64 percent of Medicover’s members are state workers. This percent has declined from 76 percent in 2006 and the scheme expects to lose more members to Gems.

The principal members at Medicover are 43 300 while at Liberty Health Medical Scheme are 42 100.

Both companies have met with the council for medical schemes to discuss the proposal.

The next step would be to offer members an opportunity to cast their vote in an audited ballot papers.

Andrew Edwards, executive principal officer at Liberty Health Medical Scheme, said the board was proposing a solution that would best protect its members.