Urgent action needed from all medical service providers to oppose COIDA regulations

Dear members, partners

Survey Link: Click Here

On 19 October, the Compensation Fund gazetted regulations for public comment which will only allow Compensation Fund payments to be made into the accounts of medical service providers. As you all know, without the services of third party administrators or pre-funders, it often takes the Compensation Fund over 2 years to pay for IOD claims, if ever.

If the regulations are passed, payments will no longer be able to be made directly into the accounts of third party pre-funders or administrators, even though MSP invoices have been ceded to the third party pre-funders or administrators. This will generate further administrative chaos and place a substantial burden on MSPs, whose focus is best directed at treating IODs. SAMA believes the ultimate effect of these regulations will be forced into a situation where they are no longer able to treat IODs.

The regulations are deeply problematic. As you may know, this year the Department of Employment and Labour introduced the COID Amendment Bill, which embedded a catastrophic and possibly unconstitutional clause that sought, for no given reason, to prevent medical service providers from ceding their claims to third-party pre-funders and administrators for payment by the Fund.

Although the offending clause was removed by Parliament, after SAMA and other affected parties made presentations to the Committee, the very day after the legislature rose, the Compensation Fund Commissioner published regulations that effectively by-passed our democratically elected representatives. After extensive public lobbying by affected parties, including SAMA, the Commissioner withdrew the regulations, only to re-publish them on 19 October 2021 for a 60-day period of public comment.

SAMA, in collaboration with workers, employers and a range of affected parties, will be opposing these regulations. As MSPs, we have until 17 December to submit our comments. I urge every one of you to do this.

We would like you, as members and partners, to participate in three ways:

1. Please complete our short, 10-question survey: Click Here 
2. Submit your comment via email to commentsAVS@labour.gov.za by Friday 17 December 2021.
3. Please share this message, the survey, and your call for comment, with your associates, members, partners and colleagues.

The South African Medical Association - Postal Address-The South African Medical Association P O Box 74789,Lynnwood Ridge Pretoria 0040, South Africa Physical address The South African Medical Association, Block F Castle Walk Corporate Park Nossob Street Erasmuskloof Ext3 Pretoria 0181,
South Africa www.samedical.org

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