Fedhealth Medical Scheme’s (“Fedhealth”) rating is underpinned by a strong financial profile (a function of strong solvency, sound liquidity and adequate earnings), which is offset by an aged member base and moderate market position. The rating also factors in the recent amalgamation between Fedhealth and Topmed Medical Scheme (“Topmed”). Topmed is a small sized scheme which exhibits very strong solvency, although exposed to high earnings risk under the current operating model.
Fedhealth is an established player in the South African open medical schemes industry, covering around 144,554 beneficiaries at year-end FY18. The scheme benefits from a long-standing relationship with its administrator, Medscheme, which is considered to be a prominent administrator in the South African Medical Schemes arena.