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 Government1

2

3

Summary of Key Performance Indicators

Making people healthier, enhancing and protecting their livesOn the way to Wellness

1

Agenda

A strong partnership benefitting

Local Government

Recognising key stakeholders

MedicalScheme

Services, expertise, infrastructure

Setshealthcare

policy

Regulatorof medical schemes

Funding mechanism

Protect members’ interests

Advice

Provision of benefits

Department of Health

Councilfor Medical Schemes

Board of

Trustees

Advisors Employers Members Providers

Administrator

Lifestyle products

CommunicationHealth Risk

ManagementOperations

Actuarial services

Finance and reporting

VitalityMarketing and

distributionTariff

negotiationsScale

Product development

Management

Shared strategic focuses

Build and maintainmembership and

solvency

Stableannual

contribution increases

Maintainingbenefits

Encouragehealthy lifestyles

Quality

Access

Competitive advantage

Affordability

Security

Agenda

Summary of key LA Health performance indicators

2

Growth in solvency despite membership growth

2005 2006 2007 2008 20090%

5%

10%

15%

20%

25%

30%

35%

40%

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

2004 2005 2006 2007 2008 2009 2010 Latest* 16,000

20,000

24,000

28,000

32,000

36,000 35 642

16 800

Financial performanceKey LA Health observations for 2011

Accumulated Funds

Annualised Gross Contributions

Total Non-Healthcare Expenses

Membership

YTD   DECEMBER

2011   2010

   

307,755,374   274,741,531

1,178,119,378   898,106,572

11%   12%

35 642   30260

2011 Contribution increases

LA Health Bonitas Hosmed SAMWUMED KeyHealth0%

5%

10%

15%

20%

25%

Highest

Competitor 1 Competitor 2 Competitor 3 Competitor 4

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 livesOn the way to Wellness

3

Make people healthier, enhance and protect their livesOn 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 assessmentsScreening testsHealthy lifestyle choicesIntervention 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