The Department of Health has incurred a substantial legal bill, spending R9.7 million since October 2023. This was to defend legal challenges against its flagship National Health Insurance (NHI) Act and the existing National Health Act. Health Minister Aaron Motsoaledi revealed the figures to MPs yesterday. This was in response to a question posed by Democratic Alliance (DA) MP Michéle…
Tag: Medical Schemes
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NHI Sparks Alarm and Calls for Healthcare Reform
The looming implementation of the National Health Insurance (NHI) Act is casting a long shadow over South Africa. NHI sparks alarm among critics who are expressing profound concern over its viability. This is particularly due to the well-documented struggles within the existing public healthcare system. Fears are mounting that the ambitious plan could decimate private medical schemes. However, it might…
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Medical schemes facing ‘slow death spiral’ amid regulatory failures
South Africa’s medical scheme industry is at a critical juncture, with escalating regulatory failures forcing schemes to design options that include gaps in cover. This trend increasingly requires members to purchase supplementary insurance, such as primary healthcare plans or gap cover. Consequently, this pushes consumers to pay for cover based more closely on their health risks. This was a key…
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Public Servant Concerns on Redirecting Medical Aid Contributions
Plans to redirect South African public servants’ significant medical scheme contributions into the proposed National Health Insurance (NHI) fund face considerable hurdles. Delegates at the annual Board of Healthcare Funders (BHF) conference heard this on Tuesday. Any such move would necessitate complex changes to public servants’ conditions of service. Staunch resistance to this process is likely. Public servants currently benefit…
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NHI Act Court Challenges and Their Implications
The Board of Healthcare Funders is preparing to escalate its legal fight against the controversial National Health Insurance (NHI) Act. They are launching two new court challenges targeting public participation and constitutionality. The Board of Healthcare Funders (BHF) is preparing to launch two significant new legal challenges against South Africa’s contentious National Health Insurance (NHI) Act. This signals a deepening…
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NHI Act Legal Challenge: SAMA’s Fight for Justice
The South African Medical Association (SAMA) has initiated a legal battle. It is fighting the controversial National Health Insurance (NHI) Act. SAMA wants the court to declare the Act unconstitutional. The group highlights a major funding shortfall. This NHI Act legal challenge questions the plan’s massive tax burden. Huge Funding Required Research shows the NHI scheme requires huge funding. It…
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Low-Cost Benefit Options Extended Until 2027
The medical schemes regulator has extended low-cost benefit options (LCBOs) for health insurance companies until March 31, 2027. This enables affordable coverage for lower-income households while a formal regulatory framework is still pending. The medical schemes regulator has granted health insurance companies a two-year extension until March 31, 2027. This allows them to operate under a framework that permits low-cost…
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CMS responds to Bonitas corruption allegations
The Council for Medical Schemes (CMS) has responded to Michael Avery’s recent column titled “Anatomy of a scandal: Bonitas said to have lost Sanlam’s trust” (October 14), which questioned the regulatory body’s oversight and raised concerns about long-standing contracts in the medical scheme industry. Avery’s article insinuated that the CMS has been passive as a regulator. However, the CMS pointed…
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Younger South Africans turning to medical insurance
Medical schemes in South Africa operate on a community-rated system, offering open enrollment where members pay the same contributions regardless of their health status or age. According to the Council for Medical Schemes (CMS) 2023/24 annual report, about nine million people belong to 71 registered medical schemes. However, younger South Africans are increasingly turning to medical insurance, which offers lower…
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Final report on racial profiling investigation delayed again
The long-awaited final report from the Section 59 Investigation Panel, appointed by the Council for Medical Schemes (CMS) to probe allegations of racial profiling and discrimination by medical schemes and their administrators, has been delayed once again. The CMS now anticipates the report’s release by the end of the year, following ongoing challenges beyond its control. Initially launched in 2019…