Medical Aid Society of Malawi (Masm) has reported a K5.23 billion surplus for the financial year July 1 2023 to December 30 2024.
Briefing members and stakeholders during the 40th annual general meeting in Lilongwe on Friday, Masm board chairperson George Chitera observed that the results were achieved despite a tough operating environment coupled with high interest rates, high inflation and high exchange rates.
He said during the review period, Masm increased efforts to combat fraud, waste and abuse by implementing initiatives to identify and eradicate the vices which contribute significantly to medical scheme costs.
with the risks. | Steven Pembamoyo
“It is imperative to appreciate that the focus was not just on fraudulent behaviour, but also the unnecessary treatment and over-servicing propagated by some medical service providers,” said Chitera, who is also FDH Bank plc deputy managing director.
He said the board was already focusing on upgrading systems and driving the digitilisation agenda to grow Masm and enhance member experiences.
“The society has strategies in place to effectively deal with the risks implicit in the economic outlook and is confident to continue reporting satisfactory performance,” said Chitera.
Breaking down the figures, he said member premium contributions totalled K76.10 billion while expenditure in claims stood at K58.65 billion, performing at a claims loss of 77 percent down from 79 percent in the previous reporting period.
He said main drivers of expenses during the period included inflation rate that averaged 32 percent and the devaluation of the kwacha. On the other hand, administration expenses amounted to K20.95 billion compared to K10.02 billion the previous period.
Said Chitera: “Apart from the chronic disease prevalence, the increased demand for international quality private care exerted additional pressure on expenses due to forex shortages and currency devaluation.”
During the period, Masm membership grew by 25 percent from 165198 to 205 895 which Chitera attributed to high quality services and scheme options flexibility that meet members’ health needs.
An individual scheme member Augustine Magolowondo asked the board whether the rise in membership was not a result of government’s introduction of civil service medical insurance which he feared would bring down membership again if government changed its decision.
During the AGM, members adopted several motions, including adjusting upwards fees and allowances for the board members, and renewing AMG Global as the society’s external auditors.
Delegates also re-elected Josephine Mchungula into the board while former Malawi Revenue Authority director general John Biziwick was voted in as a new board member, replacing Alex Chikumbi who completed his two terms limit.
