Tuesday, January 19, 2021

Bomaid in a hot soup

Botswana Medical Aid (BOMAID), screamed at the flat membership growth and the contributions levels as it raised the flag for an increased membership contribution.

The country’s oldest medical aid scheme which is badly run said the membership contribution hike is necessary for its survival.

The medical aid which is facing mounting costs on the side of drug pricing ÔÇô a universal phenomenal ÔÇô and lack of forward looking strategy unlike the newly established Botsogo blamed its misery to a an increasing domestic competition in the past year.

Some of the factors which contributed negatively to its performance were the medical inflation ÔÇô resulting in a loss of about P 1 million — compounded by the impact of devaluation of the currency that took place in May last year.

The medical aid saw its billable membership staying at a stagnant position of 23,389 in 2005 as against 24,962 in 2006 blaming the sluggish growth on the above stated facts, while the active membership was slow at 23,907 from 24,329.

The total pay out for the fund is still sky-rocketing beyond control while administrative cost also remain out of control.

However, it stated that other income streams have shrank from P 9.2 million to P2.2 million at the first quarter of the year which if everything remains equal will be about P 8 million at the close of the year.

The so called revolutionary products fell short of the expectations as the “smart crad programme “ was shelved but it said it is looking at the possibility of electronic claims in a bid to assist its clients.

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