The final demarcation regulations governing medical gap cover, hospital cash plans and primary healthcare policies have been published. Finance Minister Pravin Gordhan and Health Minister Aaron Motsoaledi published the regulations under the Long-term and Short-term Insurance Acts in December. The regulations, which have been under consultation for years, will create a line of demarcation between health insurance and medical aid products and will take effect from April. Medical scheme products are regulated by the Medical Schemes Act of 1998, and health insurance products are regulated by the Long-term and Short-term Insurance Acts of 1998. Business Day reported last year that three categories of health-insurance products were of particular relevance to the demarcation exercise. These were: • Medical expense shortfall policies, or gap cover plans, which cover the shortfall between medical scheme benefits and the rates that private medical service providers may charge; •Nonmedical exp...

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