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CMS Circular 18 of 2019: Status update on Demarcation Regulations and a Low-Cost Benefit Package

The current exemption of indemnity products that are doing the business of a medical scheme expires on 31 March 2019. Entities that were granted exemption on their indemnity products in 2017, should submit renewal applications, which will be evaluated on merit, to extend the exemption period to 31 March 2021. The Council for Medical Schemes (CMS) mentioned that details regarding the due date for submission as well as information that must accompany the renewal applications will be communicated in due course.

In a media release, dated 7 March 2019, the CMS provided a status update on the Demarcation Regulations and the development of the Low-Cost Benefit Package.

About the Demarcation Regulations

The Demarcation Regulations came into effect on 1 April 2017 and identified for the first time categories of health and accident policy contracts that may conduct the business of a medical scheme and remain insurance contracts outside the regulatory provisions of the Medical Schemes Act of 1998.

Transitional provisions in the Demarcation Regulations allowed time until January 2018 or upon renewal, for amendment of health and accident policy contracts to become compliant with the Insurance Act. A two-year exemption was however agreed by the Minister of Health, whilst a Low-Cost Benefit Package is developed.

Click here to download the CMS media release that provides more detail.

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