Appeal Board ruling clarifies application of section 59(2) of the Medical Schemes Act
The ruling by the Appeal Board to dismiss a claim lodged by a medical doctor against the South African Police Service Medical Scheme (POLMED) (appellant) has helped to provide clarity on the application of section 59(2) of the Medical Schemes Act, 131 of 1998 (MSA). The section states that when there is a benefit owing to a member, the scheme has the right to pay either the member or the service provider directly within 30 days after the claim was received by the scheme. This interpretation had been confirmed by the High Court previously, but a recent judgment concerning claims submitted to a liquidated scheme created confusion in the industry as to whether the scheme has a discretion to elect who to pay, following a claim.