CONSULTATIVE MEETING ON MUNICIPAL AND PRIMARY HEALTH SERVICES LA Health Medical Scheme and Discovery Health welcome the delegates Presenter: Penny Thlabi 8 April 2011

Agenda A strong partnership benefiting Local Government Summary of Key Performance Indicators Making people healthier, enhancing and protecting their lives On the way to Wellness

Agenda A strong partnership benefitting Local Government

Recognising key stakeholders Medical Scheme Services, expertise, infrastructure Sets healthcare policy Regulator of medical schemes Funding mechanism Protect members’ interests Advice Provision of benefits Department of Health Council for Medical Schemes Board of Trustees AdvisorsEmployersMembersProviders Administrator Lifestyle products Communication Health Risk Management Operations Actuarial services Finance and reporting Vitality Marketing and distribution Tariff negotiations Scale Product development Management

Shared strategic focuses Build and maintain membership and solvency Stable annual contribution increases Maintaining benefits Encourage healthy lifestyles Quality Access Competitive advantage Affordability Security

Agenda Summary of key LA Health performance indicators

Growth in solvency despite membership growth LA Health has successfully and consistently been able to grow solvency levels whilst becoming the Scheme of choice for Local Government employees LA Health has successfully and consistently been able to grow solvency levels whilst becoming the Scheme of choice for Local Government employees

Financial performance Key LA Health observations for 2011 Accumulated Funds Annualised Gross Contributions Total Non-Healthcare Expenses Membership YTD DECEMBER ,755, ,741,531 1,178,119, ,106,572 11% 12%

2011 Contribution increases LA Health very competitive in its market and over the last 5 years managing increases within a narrow band

Agenda Making people healthier, enhancing and protecting their lives On the way to Wellness

Make people healthier, enhance and protect their lives On the way to Wellness 1997: Launch of Vitality “The initiative arises out of the fact that medical schemes focus largely on sickness and do not encourage preventative health care.” Business Day, 14 November 1997 Vitality is the World’s longest standing, scientifically based wellness programme with more than 1.5 million members across the United States, United Kingdom and South Africa Proven success in behavioural change and healthcare cost reductions through better outcomes Today

Employee wellness Wellness expertise, sophisticated data analysis capability, risk management and excellent products Comprehensive platform of benefits and tools to deliver employee wellness monitor the health and wellness of employees  Health assessments  Screening tests  Healthy lifestyle choices  Intervention strategies Provide employer with information to understand employee health and wellness challenges

Stakeholder partnerships Through the LA Health / Discovery relationship developing a partnership with SALGA to further enhance the lives of Local Government employees and South Africans

Thank you