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Consumer commission eyes medical schemes

The recently-established National Consumer Commission has already received complaints about the medical aid industry, the Board of Healthcare Funders of SA (BHF) said on Thursday.

Commissioner Mamodupi Mohlala told BHF delegates at a conference in Sun City this week that her office had received a number of complaints under the Consumer Protection Act from members who did not understand how their medical aid rules worked.

"Mohlala was making specific reference to section 22 of the Consumer Protection Act, which states that consumers have a right to information in plain and understandable language," the BHF said.

She said the medical schemes industry was earmarked for special investigation this year with preliminary discussions between the commission and the Council for Medical Schemes held on May 25, 2011.

The commission came into effect on April 1.

Consumer law expert Matthew Gibson from Edward Nathan Sonnenbergs said the Council for Medical Schemes was considering applying for exemption from the act, on the grounds that the Medical Schemes Act is already applicable.

"But the minister will have to agree that the existing legislation offers the same protection as the Consumer Act... and the Consumer Act is really comprehensive."

Various sections of the act apply to the medical services sector, such as the right of consumers to full disclosure of the price of goods and services and the provision relating to unfair, unreasonable or unjust contract terms.

Mohlala said the commission was looking at these two provisions relating to medical schemes.

"People are complaining about hospital treatments, saying that their medical aid doesn't pay the full amount and the consumer is forced to pay an amount they did not expect or understand," she said. 

Jul 07 2011 17:09 Sapa