The Financial Intermediaries Association (FIA) also responded to the announcement of the Council for Medical Schemes (CMS) prohibiting South African medical aids from offering Low-Cost Benefit Options (LCBO) to low-income market segments.
The FIA came out strongly against the decision that LCBOs, exempted from the Medical Schemes Act, will not be allowed after March 2021.
It makes a number of telling points which exposes serious shortcomings in the research which led to the decision and should certainly be borne in mind when considering the implications of what appears to be an over- hasty decision. At best, the circular should be withdrawn to allow further consultation.
Click here to read FIA’s responses to some of the statements contained in Circular 82.
