CMS Annual Report 2021/22 Highlights: Efficiency Discount Options (EDOs)
Efficiency discount options (EDOs) were introduced in 2008 and are medical scheme options that allow members to pay lower contributions by agreeing to make use of certain healthcare providers as defined by the scheme they participate on.
EDOs provide medical schemes with the capacity to use economies of scale on behalf of members when negotiating tariffs and fees with providers.
The following schemes offered EDOs as at 31 December 2021:
·?????Bestmed Medical Scheme;
·?????Bonitas Medical Fund;
·?????Compcare Wellness Medical Aid Scheme;
·?????Discovery Health Medical Scheme;
·?????Fedhealth Medical Scheme;
·?????Government Employees Medical Scheme;
·?????Hosmed Medical Aid Scheme;
·?????Medihelp;
·?????Medshield Medical Scheme;
·?????Momentum Health;
·?????Motohealth Care;
·?????Old Mutual Staff Medical Aid Fund;
·?????Profmed;
·?????Sizwe Medical Fund;
·?????Thebemed; and
·?????Umvuzo Health Medical Scheme.
EDOs contributed 56.6% of the total surplus during 2021, even though the options only accounted for 28.1% of the total membership. The better results experienced by EDO options is due to the younger age profile. The average age of EDO beneficiaries is 23.1, which is significantly lower than the average age of 42.8 that beneficiaries on non-EDO options have.
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