Wendy Knowler shares the latest about the Health Squared collapse on The Money Show.
– Medical scheme Health Squared announced last week that it is applying for voluntary liquidation
– The Council for Medical Schemes has now urged members not to make “panic-inspired movements” – it is engaging with other medical aids about migrating them
Members of Health Squared are in shock after the medical scheme announced it’s applied for voluntary liquidation because of dropping solvency levels.
They were informed that their “health events” would be covered only up to the end of August.
“Imagine being given just eight business days notice that your medical cover is going to come to an abrupt end!” exclaims consumer ninja Wendy Knowler.
She says the scheme’s principal members have 23 785 dependents, which means this development affects more than 38 000 people.
The Council for Medical Schemes (CMS) has now urged those affected not to make “panic-inspired movements” that might leave them worse off in the end.
The regulator says it is engaging with seven other medical schemes about migrating current Health Squared members.
“CMS will keep Health Squared Medical Scheme members and the public informed of further developments.”
Predictably, notes Knowler, several brokers have posted adverts on the scheme’s Facebook page, urging members to contact them for alternative cover.
But Mark Hyman, CEO of medical claims assessors MediCheck, has warned affected members not to investigate this option right now she reports.
Hyamn said they would be burdened with penalties and exclusions.
Several industry insiders have told me, given that Health Squared members are not voluntarily seeking to move to another scheme, they will most likely not have these waiting periods imposed.
Wendy Knowler, Consumer journalist
For more detail, scroll up and listen to the interview (skip to 1:35)
This article first appeared on CapeTalk : Health Squared collapse: Council talking to other schemes re migrating members
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