Medical schemes regulator considers umbrella fund
Proposition is for small restricted schemes to pool resources for more affordable membership
The Council for Medical Schemes (CMS) is considering introducing an umbrella fund to help small restricted schemes pool their resources to try and make membership more affordable. It is one of several measures being explored by the regulator in response to the government’s policy on National Health Insurance, which advocates industry consolidation. The CMS initially suggested in 2017 that schemes with fewer than 6,000 members might be the first target for dissolution or mergers with larger schemes, drawing fire from industry players and activists alike. It has since softened its position. In a discussion document released at the weekend, the CMS said the size of a scheme alone was “not the most objective and justifiable measure” to determine which schemes should be prioritised for consolidation. The council said it planned to do further research to identify which schemes could be amalgamated, and the effect this would have on administrators. The council also said it planned to relea...
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