FIA expresses dismay at draft demarcation regulations

The Financial Intermediaries Association of Southern Africa (FIA) has expressed dismay over the draft Demarcation regulations proposed by the Treasury highlighting the fact that by putting an end to various types of health insurance plans (both short-term

This is according to Linza van Aswegen, Chairman of the Healthcare Committee at the FIA, who says while the intention of the regulations is to protect medical aid schemes from being left with older and more sicklier members, while younger and healthier people opt for underwritten health insurance schemes, it is possible that this move will not succeed, especially if younger people decide to not join a medical aid.

“Generally speaking, young people avoid joining a medical aid as they see it as an unnecessary cost because they feel that they are in good health and perceive a medical aid as a means to cross-subsidise older, sicklier members.”

Van Aswegen says outlawing the many health insurance products in response to consumer needs in the face of rapidly rising healthcare costs is not the solution and the authorities are actually doing consumers a disservice.

“The FIA supports the option of providing consumers with a choice of health insurance products, which when used in conjunction with sound advice from financial intermediaries, can better ensure each consumers individual and unique medical care expenses can be met through good financial planning,” concludes van Aswegen.