The medical scheme regulator’s move last week to scrap health insurance products is at odds with the constitution and will have potentially “catastrophic consequences” for consumers, warns insurer Day 1 Health CEO Richard Blackman.

The Council for Medical Schemes (CMS) issued a directive on December 4 that sent shock waves through the private health-care industry, announcing that no more exemptions to the Medical Schemes Act will be granted for entities that offer less cover than the law requires after March 2021. The circular (https://www.medicalschemes.com/files/Circulars/Circular80Of2019.pdf)issued by CMS registrar Sipho Kabane on December 4 means primary health and hospital insurance products, as well as bargaining council medical schemes that offer pared-down benefits, will have to be wound down by this deadline.

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