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BusinessLive reports that the Council for Medical Schemes (CMS) has initiated legal proceedings to place Netcare Medical Scheme (NMS) under curatorship, in yet another dispute highlighting an escalation in hostilities between the regulator and the medical aid industry.
NMS made it clear on Tuesday that it would oppose the application, saying the regulator’s intention to put its affairs under legal supervision lacked justification. “The application relates to a technical issue going back to 2022, which the scheme remedied at the time,” explained Craig Taylor, NMS’s principal officer. In its application, the CMS expressed its displeasure with the scheme’s decision to postpone the election of its board of trustees, claiming that the board was unlawfully elected. Netcare said it disagreed with a legal opinion on which the regulator based its case, arguing that a ruling by the council appeal board supported its legal interpretation, contradicting that of the council. This is the second legal dispute between the regulator and Netcare in as many months. In October, Judge Mandlenkosi Motha dismissed the council’s application to bar a division of Netcare and Discovery Health from selling prepaid private healthcare vouchers.
- Read the full original of the report in the above regard by by Kabelo Khumalo at BusinessLive
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