The Momentum Group has announced that Momentum Health will be taking over the administration of Bonitas Medical Fund from 1 June.
This is the biggest transfer of a medical scheme from one administrator to another in the history of South Africa, adding 370,000 families and 750,000 beneficiaries to the Momentum Group’s health administration operations.
With the transfer, Momentum Group is nipping at the heels of market leader Discovery, as the former sets its sights on becoming South Africa’s biggest health insurer, reported Bloomberg.
The transfer will increase Momentum’s market share to 30% from 22%, lifting it to the No. 2 position in health insurance rankings, just four percentage points away from Discovery.
Momentum CeO Jeanette Marais said in an interview with Bloomberg, “Between Discovery, ourselves and Medscheme, we actually administer 90% of this medical-scheme underwriting market or administration market in South Africa, so it is quite concentrated.”