The North Gauteng High Court in Pretoria has placed Medshield Medical Scheme under provisional curatorship this week after the Council for Medical Schemes (CMS) made an application to address governance concerns at the scheme.
The announcement follows shortly after Sizwe Medical Fund experienced the same fate last month. According to reports, the medical industry has said that another, as yet unnamed, player could also be put under curatorship by the end of the year.
Meanwhile, Medshield has will be run by provisional curator, Themba Langa, who will replace the current board of trustees and principal officer. Langa has been tasked with ensuring that a new Board takes over the reigns at Medshield in due course.
Assurance to beneficiaries
The CMS said that beneficiaries of Medshield should rest assured that the claims-paying ability of their scheme is not affected by the provisional curatorship. “The provisional curatorship has nothing to do with the financial soundness of the scheme. There are no concerns whatsoever over the financial position of the scheme,” said Dr Monwabisi Gantsho, registrar of medical schemes and chief executive of the CMS.
Medshield remains one of the largest and healthiest schemes in the market. At the end of 2011, the scheme had over 236 000 beneficiaries and a solvency of 36.6% – which is above the 25.0% required by the Medical Schemes Act. Dr Gantsho added: “I am looking forward to a speedy return of the scheme to sound governance. The curator will be working very closely with the Regulator in this regard.”
The CMS advised brokers to act with restraint. “Any advice they give must accord with the principles of best advice, have the best interests of their clients at heart, and be based on a proper assessment of the situation. As financial advisors, brokers are also reminded of the Financial Services Board (FSB) legislation which clearly stipulates that consumers are entitled to best – independent – advice at all times,” said the CMS in a statement.
Medshield is placed under curatorship
Recent Articles
Featured How is debt consolidation different from debt counselling?
If you’re struggling to manage your debt and you decide to seek help, you will likely come across the terms “debt counselling” and “debt consolidation”. Although they sound like synonyms, these are two separate debt solutions.
What factors colour your credit application?
When you apply for a loan, your prospective creditor will assess whether you can afford the monthly repayments. But what do creditors actually consider on your credit report, and what most interests them?
Is good debt a good reason to take out a personal loan?
When you’re in a pinch and you need to borrow money, you may reach out to a creditor for a personal loan. The upside of this kind of loan is that you can spend the money on anything you choose. However, just because you can use it for anything, does not mean you should.
Checklist for a good consolidation loan
Debt can get out of hand if it’s not managed properly. That is why it’s important to be realistic about your budget and consider affordability before you take a loan. However, if your debt still gets out of hand, there are ways you can rein it in again.
Deals
Get 40% off your Easter holiday at The President Hotel
Price: Available on request
When: 01-30 April 2021
Where: Cape Town
Colosseum Deluxe Suite Special
Price: R990
When: Until 31 August 2021
Where: Cape Town
One & Only Fitness Special
Price: Available on request
When: Until 30 April 2021
Where: Cape Town
Our suppliers and companies we review
