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Healthcare Product Proposals

Business Day recently published the views of some prominent players in the healthcare industry in response to the draft demarcation proposals published by the national treasury recently.

“…some proponents of regulation — such as health economist Alex van den Heever — believe the Treasury’s proposals do not adequately protect medical schemes, while other players — such as Day1 — argue the plans will rob consumers of vital medical insurance and put companies out of business.”

“Day1 sells health insurance to low-income workers, offering limited general practitioner and dentist visits and limited private hospital cover. When their benefits run out they are transferred to the state sector.

“We recognise that low-income people can’t afford medical scheme cover. We give people something, rather than nothing,” Mr Blackman told Business Day in an interview. “We give dignity to people who can’t afford medical aid.”

The Board of Healthcare Funders (BHF)…said in its submission that there was clearly a need for products that supplemented medical schemes, as medical schemes did not always cover their members’ bills in full. The BHF said medical schemes were the most important vehicle for healthcare funding, but until the impediments to affordable cover were dealt with, there would be a need for additional products that allowed members to mitigate their unfunded risks.

The Actuarial Society of SA’s president-elect Roseanne da Silva welcomed the Treasury’s move to regulate the health insurance industry, saying legal certainty would benefit consumers, medical schemes and businesses alike.

Please click here to read the full Business Day article. (Subscription is required.)

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