CMS to Discovery Health: Stop selling prepaid vouchers today, or else
The CEO of Discovery Health, said Discovery had ensured that the structure complied with relevant legislation before the product was launched.
The Council for Medical Schemes (CMS) is waiting for Discovery Health to provide confirmation and evidence that its prepaid healthcare voucher scheme has ceased. If it does not confirm by close of business on Friday, the CMS will take further action.
The CMS issued a cease and desist directive to Discovery Health and Netcare Plus to stop conducting the business of a medical scheme after Discovery Health launched a new digital health innovation enabling people to buy vouchers for primary healthcare services in the private healthcare sector.
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“As part of the directive, Discovery was directed to provide the CMS with confirmation and evidence that the prepaid healthcare voucher scheme has ceased by close of business on 18 December 2020. Accordingly, the CMS is waiting for this confirmation and will only take further action should Discovery fail to comply with the directive,” a spokesperson said.
The directive was issued in terms of the Medical Schemes Act for “conducting the business of a medical scheme”. The Act describes the “business of a medical scheme” as the business of undertaking the liability associated with providing health services, as well as paying for it and rendering a relevant health service.
The CMS said earlier this week that it had instructed Discovery Health to cease conducting the business of a medical scheme without the requisite approval from the CMS. The company must also arrange to refund consumers who have already bought these vouchers.
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In response, Dr Ryan Noach, chief executive officer (CEO) of Discovery Health, said they would respond in due course, but that the company’s intention was to offer innovative access to affordable high-quality care. He said Discovery had ensured that the structure complied with relevant legislation before the product was launched.
By the time of going to press, the product was still offered on Discovery’s website.
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