Regulator deregisters GetMed Medical Scheme

September 28, 2011

The Office of the Registrar for Medical Schemes has taken the decision to cancel the registration of GetMed Medical Scheme in terms of section 27 of the Medical Schemes Act, 131 of 1998.
During 2009 the Office of the Registrar for Medical Schemes became aware of GetMed Health Protection Plan, an unregistered product operating within the medical schemes industry, through various complaints received from its members. GetMed Health Protection Plan started off as a range of benefit options for the sick fund of the Bargaining Council for the Building Industry, Kimberley. GetMed (Pty) Ltd is a company that administers these benefit options on behalf of the Bargaining Council.

However, GetMed (Pty) Ltd expanded the GetMed Health Protection Plan product outside the bargaining council environment by marketing the product as a medical scheme. They marketed their product all over the country at an attractive price to members of the public and more specifically to corporate entities for their employees. The Registrar for Medical Schemes determined that this product clearly fell within the definition of “doing the business of a medical scheme” as defined by the Medical Schemes Act, 131 of 1998.

During this Office’s engagement with GetMed (Pty) Ltd it was established that more than 2 500 members had enrolled onto the GetMed Health Protection Plan product. The directors of GetMed (Pty) Ltd acknowledged the fact that their product fell within the confinements of the Medical Schemes Act and indicated their eagerness to register as a medical scheme.
The Office of the Registrar conditionally registered GetMed Medical Scheme on 17 December 2010 as a medical scheme in order to afford protection to the large quantity of members already on the books of GetMed Health Protection Plan. The following conditions were imposed:

(i) To provide a financial guarantee as required by the Medical Schemes Act for all medical schemes;
(ii) To pay the application fees for the accreditation of the administration and managed care organisations;
(iii) To provide further documentation to the Accreditation Unit of the Office of the Registrar for Medical Schemes based on the initial evaluations done on their administration and managed care organisations; and
(iv) To provide a reinsurance contract for evaluation by the Office of the Registrar.

Read more on ~uFAnews.co.za#www.fanews.co.za/article.asp?Healthcare;6,Medical_Schemes;1078,CMS_Regulator_deregisters_GetMed_Medical_Scheme;10714~

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