In our Mastering Compliance issue dated 21 February 2017, we discussed the final Demarcation Regulations to take effect from 1 April 2017.
The Demarcation Regulations set out that certain insurance policies that have elements of a ‘business of a medical scheme’ (excluding primary healthcare products and hospital indemnity products) shall be considered ‘health policies’ or ‘accident and health policies’. These Regulations will take effect from 1 April 2017.
On 15 March 2017, the Council for Medical Schemes (CMS), in consultation with National Treasury, Department of Health and the Financial Services Board (FSB), issued a guideline on the Framework for the Exemption of Providers of Indemnity Products that conduct business of a medical scheme.
Insurers and financial service providers that provide indemnity products (i.e. primary healthcare products and hospital indemnity products) that conduct ‘business of a medical scheme’ in terms of the Medical Schemes Act, should apply for an exemption by 31 March 2017 if they want to continue providing these products to the public and their clients. This exemption will only be granted for a two-year period, subject to certain conditions. The exemption framework is a transitional arrangement whilst the Department of Health conducts further research and development of a Low-Cost Benefit Option (LCBO) guideline.
Click on the link for more information on how to apply for the exemption, how to submit the application and the process that must be followed.
Click here to read the Circular which was issued by the CMS.