BusinessLive reports that the Council for Medical Schemes (CMS) will temporarily relax rules to allow the industry to implement measures aimed at retaining members in the face of Covid-19, which threatens the affordability of cover for employers and consumers alike.
The CMS has issued an industry circular saying medical schemes can apply for exemptions to the Medical Schemes Act to launch lifelines such as contribution holidays, or access to medical savings accounts to cover premiums. The R160bn medical scheme market covers about 8.9-million members, most of whom are subsidised by their employers. Medical schemes face a host of unexpected risks triggered by the pandemic, but their biggest worry is how to hold on to members, as companies and individuals grapple with the economic fallout of the lockdown and the growing threat of retrenchments. The CMS has stopped short of granting blanket exemptions to the act. “Each exemption application will be assessed on its merit with key consideration given to a scheme’s financial ability to absorb such an arrangement. The CMS has also declared Covid-19 a prescribed minimum benefit, compelling schemes to fully cover claims for the disease. The Board of Healthcare Funders has encouraged its members to pay for Covid-19 claims in full and to take a flexible approach to managing members who face financial difficulties.
- Read the full original of the report in the above regard by Tamar Kahn at BusinessLive
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