Development Of A Framework For Medical Aid Funds Proposed Regulations

NBFIRA, Deloitte, the Ministry of Finance and health care funders conducted a workshop on the 20th of October 2015 to discuss the proposed Medical Aid Funds regulations. The proposed regulations are designed to protect the contributions of members and ensure the sustainability of the Medical Aid Funds sector, to be better placed to serve the public.

The business of Medical Aid Funds MAF can be described as undertaking liability on behalf of an individual, or a group of individuals in return for a contribution paid by the individual(s) that directly relates to the cost incurred through hospital treatment or any prescribed medical services.

It is important to note that for the purposes of this regulatory framework, any business that indemnifies the cost of a customer’s medical treatments will be considered to be a Medical Aid Funds and will have to comply with the proposed regulatory framework.

Before promulgation of Medical Aid Funds, the Minister of Finance & Development Planning to amend NBFIRA Act as follows;

• Removal of Medical Aid Funds under definition of insurer.
• Update list of entities of Non- Bank Financial Institutions to include a Medical Aid Fund.
• Amend definition of a Medical Aid Fund to be the same as under Medical Aid Fund Regulations.

The proposed regulations shall be promulgated once approved.