Medshield Medical Scheme under provisional curatorship

From the Council for Medical Schemes:

 

Press release 17 of 2012: Medshield Medical Scheme under provisional curatorship

The North Gauteng High Court in Pretoria placed Medshield Medical Scheme under provisional curatorship today, following

the successful application of the Council for Medical Schemes to address governance concerns at the scheme.

Council is the regulator of the medical schemes industry, responsible for enforcing compliance with the Medical Schemes

Act 131 of 1998 to ensure that the interests of beneficiaries are prioritised at all times.

The provisional curator, Mr. Themba Langa, replaces the current Board of Trustees and Principal Officer and must ensure

that a new Board takes over the reigns at Medshield in due course, one that is fit and proper to run the affairs of the

scheme.

Assurance to beneficiaries

Beneficiaries of Medshield should rest assured that the claims-paying ability of their scheme is not affected by the

provisional curatorship.

Dr Monwabisi Gantsho, Registrar of Medical Schemes and Chief Executive of the Council said: “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.”

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.

Medshield remains financially sound and sustainable in the long run. 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.”

Advice to brokers

Brokers are advised to act with restraint. Any advice they give must accord with the principles

Speak Your Mind

*