Health insurance Regulations Take Effect
The health insurance industry is undergoing radical changes, and a lot of it has got to do with the exorbitant prices that one has to pay medical specialists. Here we will like at health insurance regulations.
These unregulated medical experts charge their patients what they like. They know that their patients have gap cover which will settle these high bills they charge when the medical aids won’t.
Now, final regulations governing this medical gap cover as well as regulations surrounding primary health care policies and hospital cash plans have been published. These regulations, due to kick in from April 2017, create a distinction between medical aid products and health insurance.
Identities will be Clear – Health insurance Regulations
The reason for these health insurance regulations is that before they came about, people would think that the health insurance products they bought were similar to what medical schemes offer. Now, these regulations will clearly identify what is what. Which schemes are in fact medical schemes and which ones are insurance schemes.
Unlike insurance products, medical schemes have conditions which they have to comply with.
There is always the issue as to where to draw the line between medical scheme products and health insurance. Up until now, there has always been confusion between what a medical aid is and what health insurance is. Now, these healthcare insurance policies are all on their way out.
Get Assistance to Clear up the Confusions
Medical gap cover and hospital cash plans will continue to be available. But now there will be strict regulations in place. If there is any confusion, customers need to consult with financial advisors. And make sure that they understand the level of cover they need because of even today in 2017. The healthcare environment causes much confusion and wrong decisions.
Some medical experts say that these new health insurance regulations are designed to stimulate medical scheme membership which hasn’t been doing well in recent years.
The new regulations will create a line of demarcation between medical aid products and health insurance. They also stipulate that primary health care insurance policies will be provided – but only within the framework of the Medical Schemes Act.
Health Minister Aaron Motsoaledi asked the Council for Medical Schemes to give a two-year exemption for primary health care insurance policies. While the Department of Health did more research into the creation of a budget benefit option guideline.
All new health policies written after the regulations come into operation will have to abide by the new requirements. Existing health policies will have to align to the regulations by 1 January 2018.
Are the Draft Regulations Legal?
The Treasury didn’t take kindly to the objections raised that the draft regulations weren’t legal. It is believed that the regulations would, in fact, deprive many poor people of health services and who can’t afford medical aid. With access to health services.
The regulations are in place to ensure that health insurance products don’t detract from medical aid and they also provide better protection for consumers.
Products which Enhance Medical Aid
Treasury said that the regulations weren’t bringing an end to important products. And would also allow insurers to go on as usual with providing crucial gap cover and hospital cash plans. But in a way that doesn’t harm medical aid, but rather enhances it.