METHOD OF MANAGING THE BUSINESS OF A MEDICAL SCHEME

The present invention relates to a method of managing the business of a medical scheme wherein the provider of such medical scheme undertakes liability in return for a premium or contribution, and provides to members who pay such premiums or make such contributions, relevant health services, and/or assistance in defraying expenses incurred in connection with rendering such relevant health services. The improvement comprises in calculating a difference amount which is the amount of the premiums or contributions paid by a member to the medical scheme less the costs incurred on the member's behalf by the medical scheme. This difference amount is then accumulated in a health fund. At a predetermined point in time, if the balance in the health fund is positive, the member is paid out at least a portion of the balance in the health fund.