1. Medcor Presentation

2. Introduction Active members: 40 000 Pensioners: 6000
Dependents of active members, pensioners and staff that took severance package is 54000
Budget of DCS is : 4.8 billion
Budget for MEDCOR is : 630 million

3. The injury on duty budget is not part of the MEDCOR budget.
DCS, SAPS and SNDF have their own budget on injury on duty
Injury on duty budget is 10 million
The payment is direct from DCS’s budget

4. Discussion
The Medical Schemes Act, Act no. 131 of 1998, states the duties of the Board of Trustees, Principal officer and Statutory Committees.
The Business plan or benefits structure of the Scheme must be compiled, costed and communicated to the members of the Schemes and be submitted to the Council for registration.

5. Premium determined during the costing must be able to sustain the Scheme.
The Actuarial is busy doing that for MEDCOR.
We expect two options:
Option one will cater for basic benefits for the lower earning income brackets
Plan two will cater for additional benefits with additional costs for higher income bracket members.

6. Cost savings plan Managed health care. Introduction of exclusions e.g.
Monitoring mechanisms.
Stopping all service providers suspected of fraudulent activities and those under investigation.

7. Management of the Scheme
Board of Trustees was appointed and meet regularly.
Contract with MEDIHELP expired 31 July 2002.
New service provider appointed with effect from 1 August 2002.
Task teams were appointed to manage a smooth transition from MEDIHELP to MX-Health.

8. A strategic exercise was conducted to identify and determine core functions and strategic objectives of the Board of Trustees.
The organigram for MEDCOR has been approved by the Board of Trustees
The vision or MEDCOR is finally to have its own staff and premises.

9. Capacity building of the Board of Trustees
Training
Understanding their duties
Financial management
Acting in the interest of the Scheme at all times

10. Challenges Development of Human Resource policies.
Appointment of the Principal officer and staff.
Participation of experts in these committees at a reasonable rate/ affordable rate.
25% reserves to be raised by the Scheme.
Office space for personnel.

11. Personnel expenses grows by 6% but medical inflation grows by 15%.
Financing of MEDCOR budgets.

12. MEDCOR INCOME AND EXPENDITURE
Year
Month
Actual
Budget
Contribution (R75,00)
2002
May
June
July
August
TOTAL INCOME