More utterly misguided criticism of medical schemes

I wish this would be the last time I say this (or the first or the second):

“Medical Schemes are non-profit entities are don’t make profits for shareholders.” There are administration companies that charge administration fees that have shareholders and make profits. However, if my medical scheme pays me a greater benefit, they will be removing a benefit from someone else or making everyone pay more in contributions.

It really is a simple idea, but clearly this misguided “GP” doesn’t understand the first thing about the organisation he is criticising.  Note that I’m not commenting on a particular medical scheme’s practices, but rather the universal reality of medical schemes.

Published by David Kirk

David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation. He has been involved in significant insurance projects across Sub Saharan Africa and in the Middle East.