Zim medical insurer Cimas posts $4,3 million PAT, increases contributions by 50pct

Zim medical insurer Cimas posts $4,3 million PAT, increases contributions by 50pct

HARARE, June 15 (The Source) – Zimbabwe’s second largest medical insurer Cimas has posted an after tax profit of $4,3 million for the full-year to December 2014 and has increased contributions for its top two packages by 50 percent with effect from July to cope with a high number of claims.

The group also recorded a six percent growth in income to $117 million for the period under review while membership only increased by one percent to 203,481.

“Our membership seems static, largely because we have lost some long standing individuals and firms who can no longer afford to pay their contributions as they face viability challenges,” the company said in a statement accompanying the results on Monday.

The society registered a slight decline in surplus to $4,3 million compared to $5,5 million in the prior year. Non-medical aid activities contributed 68 percent to the surplus.

The surplus generated in the year has grown the group’s reserves to 8.7 weeks from 8.1 weeks last year compared to the standard of 12 weeks.

The society announced a 50 percent increase in its two top packages with effect from July 1, citing the high cost of claims.

Individuals on the Private Hospital package will now fork out $146 up from $79 while those on Medexec will now pay $174 from $127.

Last month, the company suspended its online drug claims after losing $1,2 million in fraudulent claims, with the society incurring a $3,4 million drug bill during the first quarter of this year compared to $2,2 million in the last quarter.