On 15 August 2017, the Council for Medical Schemes issued Circular 56 of 2017 relating to Personal Medical Savings Accounts. The Circular reports on the Constitutional Court judgement that the savings account liabilities do not need to be treated separately from any other liabilities in the scheme and that the scheme is the right holder of the funds.
The Circular sets out the effect of the judgement of various sections of previously issued Circulars, relevant legislation and scheme rules.
It was confirmed that the judgment will not have any impact on the right of members’ access to these funds except in the case of liquidation of the scheme.
Any unclaimed savings accounts will be written back to the fund after expiry of the 3-year prescription period and no longer have to be paid to the Guardians Fund.
Click here to read the Circular.
Click here to read the article published in Mastering Compliance on 29 June 2017.