Purchase of assets

Purchase of assets and transfer of liabilities to perform the administration function in-house

    The relationship with CAMAF members has always been of the utmost importance to the Board of Trustees. In light of the need to manage down costs and improve the service, the Board, after a lengthy and comprehensive review of all the alternatives, has decided to bring the administration and most of the managed healthcare services of CAMAF back in-house.

    The timing of the change is currently being negotiated but will be no later than 3 October 2018. The decision to make this change was first and foremost to remove any distance between CAMAF and the members who rely on CAMAF for their healthcare funding and support. It is the Board’s view that this change will enhance the customer-centric service which CAMAF constantly endeavours to provide. It also places the management of those services directly in the hands of the management team rather than via an agreement with a third party provider.

    Self-administration is expected to speed up our ability to anticipate and to adapt to changes within the healthcare industry as well as other relevant industries, especially through development of the processing system.

    This decision is aimed at reducing the non-healthcare expenditure as the Board is acutely aware of the economic pressures that members and their families have been experiencing and will continue to experience. An estimated saving of R15million per annum in administration costs is anticipated. Self-administration also removes the need to pay for the profit generated by a third party provider. CAMAF currently comprised the largest portion of our current administrator’s clients.

    In the final analysis of the implementation of the decision, the Board narrowed down the possible solutions to two options. The first and preferred option (A), is to purchase the assets associated with the operational function from the current administrator and the supplier of most of our managed healthcare services, which were rendered by a company within the same group as the administrator. Certain synergies exist between this administrator and the managed health care company, such as using common IT services and client base, so it makes sense to purchase them together.

    This option (A) will have no impact on member service or processes and will provide a seamless transfer to an in-house administration. The purchase price excluding VAT has been negotiated at R16,5 million and employee benefit liabilities at R4,6 million. The purchase is a once off cost that should be recovered within less than two years through the above administration cost savings.

    The second option (B), is to move premises, purchase assets and set up an entirely new administration. This would require the building or purchasing of new systems, purchasing of fixed assets and re-developing all the protocols and procedures.

    Option (A) will not only allow the transfer to be seamless but will also save the Fund approximately R13,6 million in set-up costs, after deducting employee benefit liabilities.

    The Board has decided to move to self- administration. In terms of section 63 of the Medical Schemes Act and the Scheme Rules, members are required to vote whether the transfer of assets and liabilities, as envisaged in option (A) should be proceeded with or not. The Board has proposed, and recommends option (A). Please cast your vote by logging in on your profile > Additional Information > Proxy form and Voting. Your vote is important and is required under the Scheme Rules.

    As is mentioned in section 63 of the Medical Schemes Act, a copy of an independent evaluation report relating to the evaluation of option (A) is available and copies of this exposition as well as the report, are also available for inspection at the offices of CAMAF, Sanlam and the Registrar for medical schemes. Details of their addresses are listed below. Representations can also be made to the Registrar under this section

    The adoption of option (A) has also been placed on the agenda (see below) for the upcoming Annual General Meeting on 31 May 2018. The updated notice is available here. Should you not be able to attend the AGM in person, please send a proxy by logging in on your profile > Additional Information > Proxy form and Voting. Notice of motions to be placed before the Annual General Meeting must reach the Principal Officer no later than 24 May 2018.

    The Board would like to assure you of its continued commitment to provide peace-of-mind benefits and outstanding service to its beneficiaries.

    Questions and Answers

    For ease of reference with regard the move to self-administration, please see the Questions and Answers below. Should you have any other questions, please feel free to submit them here.

    • When phoning the call center or sending a message, who am I speaking to, Sanlam or CAMAF?
      All inbound and outbound communication from CAMAF, will be made by CAMAF.
    • How will this impact on my claims payment?
      From latest 3 October 2018 all new claims, queries and authorizations will be managed by CAMAF. The transfer will be seamless and no downtime is envisaged.
    • How will it impact on my benefit cover or premium?
      There will be no impact on your cover or premiums. Your chosen 2018 benefit option will remain intact with no changes to benefits or premiums.
    • Will I have to re-apply for the cover of my chronic condition/s?
      No. Your current registration and any other prior information will be transferred automatically.
    • What will happen to my Multiply membership and status?
      As your Multiply membership is not part of your medical aid benefits, your membership agreement is with Multiply directly and will therefore not be affected.
    • What will happen to my MSA?
      Your Medical Savings Account and balance will not be affected as the same system will be utilized.
    • Will the Board of Trustees remain the same?
      Yes, the Trustees will remain the same, subject to proceedings at the 2018 Annual General Meeting.

    Relevant addresses for inspection of documents as is required under section 63 of the Medical Schemes Act:

    CAMAF, Sanlam Health Administrators Pty Limited and Sanlam Health Managed Care Pty Limited.

    Block A
    Eco Glades 2 Office Park
    420 Witch – Hazel Avenue
    Eco Park

    the Registrar – Council for Medical Schemes


    Wedgefield Office Park
    17 Muswell Road South

    Updated AGM Agenda

      1. To confirm the minutes of the 65th Annual General Meeting held on 25 May 2017.
      2. The Chairman’s address.
      3. To consider the Report of the Principal Officer for 2017.
      4. To consider the Annual Financial Statements for the year ended 31 December 2017, the Report of the Independent Auditors and the Report of the Board of Trustees.
      5. To elect trustees to the Board for a period of three years.The election of trustees is subject to the provisions of rule 21.5 of the Rules of the Fund. The Rules may be accessed on the Fund’s website.
        1. One nomination has been received:
          Mr P Badrick
      6. To approve the Trustee remuneration for attendance at meetings.
      7. To appoint the Auditors for 2018.
      8. To approve the purchase of the operational function from the current administrator.