Sizwe Medical Fund and Hosmed Medical Scheme go head-to-head with the Council for Medical Schemes (CMS) in the Pretoria High Court tomorrow 18 August 2020. At issue is the decision by the Registrar of CMS to decline the merger between Sizwe Medical Fund and Hosmed Medical Scheme.
The merger would place the merged scheme in the top 10 biggest medical schemes, with contributions of R4Billion and solvency of 33% and reserves of R1.37 Billion.
The decision by the CMS followed a failed urgent court application to put Sizwe under curatorship – a decision Sizwe and Hosmed claim is a sinister plot by the CMS to obstruct a merger that will make significant impact on the beneficiaries of both medical aid schemes.
Sizwe maintains it has been here before where the CMS ”sabotaged” efforts of a previous merger with Thebe Medical Scheme and placed the medical scheme under curatorship as the tactic. Curatorship they say, is the ultimate goal of ensuring the black-owned medical aid schemes end up being swallowed-up by the bigger medical schemes.
The war of words is indicative of the struggles of black business with Regulators in South Africa. All regulated industries are white dominated and regulation is used to either suppress or destroy black business.