The regulator for the medical aid industry, the Council for Medical Schemes (CMS), has intervened to help beleaguered members of Health Squared Medical Scheme, which has applied to the High Court for voluntary liquidation.
Health Squared, a small open scheme with about 48 000 members, is expected to cease business on August 31, leaving members stranded without cover. Read “Health Squared Medical Scheme applies to be liquidated”.
Today, the Council for Medical Schemes (CMS) released a statement saying it would try to help members transfer to other schemes.
“In protecting members’ interests, the CMS has engaged seven medical schemes to move current Health Squared Medical Scheme members to other schemes. These medical schemes are in discussions with CMS to consider options for Health Squared Medical Scheme members while ensuring their members are not unduly disadvantaged.”
The CMS cautions members of the scheme not to panic. “While the CMS engages with these medical schemes to find a workable solution, Health Squared members are encouraged to avoid panic-inspired movements that might leave them worse off. All the parties in these engagements are conscious of the urgency of the matter and will endeavour to assist the regulator in finding a solution that is also in the best interests of their respective schemes, their current membership and as duly mandated by their boards of trustees.”
The regulator says it will keep Health Squared Medical Scheme members and the public informed of further developments.
PERSONAL FINANCE