Business / Companies
CIMAS threatens legal action over tariff dispute
16 Jun 2015 at 03:24hrs | Views
CIMAS Medical Aid Society has said it could approach the courts for the resolution of a long-standing dispute over a tariff for the sector.
The country's second largest medical aid society holds that increases in consultation, private hospital and associated unit fees that was promulgated in May 2014 were too excessive and medical aid societies could not pay the fees without effecting an increase in member contributions.
However, last October, the Association of Health Funders of Zimbabwe (Ahfoz) - which represents medical aid societies in the country - instructed all its 23 members to pay $25 (initial consultation) and $18 (review).
And this has seen doctors demand the difference from patients, with the Government warning defiant medical aid societies of possible revocation of their licences this year.
In a statement accompanying its FY2014 financials, group chairman Mr Mordecai Mahlangu
said the fees being charged by service providers are "unsustainable" and would erode capacity built since dollarisation.
And it said it may have to approach the courts in view of continued threats of its operating licence being revoked if it does not comply with the tariff.
"Whilst your society was granted its operating licence for the 2015 year, repeated threats to cancel or withdraw licences for all health funders not complying with the "gazetted tariffs" have been received.
"Your society believes that we may need to seek legal recourse if the situation deteriorates, although this is a course of action we would like to avoid," he said.
Meanwhile CIMAS last week announced an increase in membership contribution fees by 50 percent for its top two packages - Individual Private and Individual Medexec packages - citing the high cost of claims.
In terms of its financial performance for the year ended December 31, 2014, recorded a profit after tax of $4,3 million.
During the period under review, CIMAS also recorded a 6 percent growth in income to $117 million.
The group posted a surplus of $4,3 million, lower than the $5,5 million recorded in the prior year.
"Current year performance was weighed down by significant write-downs in respect of non-performing contribution receivables as certain member firms had not serviced their accounts for lengthy periods," said the chairman.
During the period under review, CIMAS' membership increased by 1 percent to 203 481, which management attributed to viability problems on the part of some long-standing members and firms.
The country's second largest medical aid society holds that increases in consultation, private hospital and associated unit fees that was promulgated in May 2014 were too excessive and medical aid societies could not pay the fees without effecting an increase in member contributions.
However, last October, the Association of Health Funders of Zimbabwe (Ahfoz) - which represents medical aid societies in the country - instructed all its 23 members to pay $25 (initial consultation) and $18 (review).
And this has seen doctors demand the difference from patients, with the Government warning defiant medical aid societies of possible revocation of their licences this year.
In a statement accompanying its FY2014 financials, group chairman Mr Mordecai Mahlangu
said the fees being charged by service providers are "unsustainable" and would erode capacity built since dollarisation.
And it said it may have to approach the courts in view of continued threats of its operating licence being revoked if it does not comply with the tariff.
"Whilst your society was granted its operating licence for the 2015 year, repeated threats to cancel or withdraw licences for all health funders not complying with the "gazetted tariffs" have been received.
"Your society believes that we may need to seek legal recourse if the situation deteriorates, although this is a course of action we would like to avoid," he said.
Meanwhile CIMAS last week announced an increase in membership contribution fees by 50 percent for its top two packages - Individual Private and Individual Medexec packages - citing the high cost of claims.
In terms of its financial performance for the year ended December 31, 2014, recorded a profit after tax of $4,3 million.
During the period under review, CIMAS also recorded a 6 percent growth in income to $117 million.
The group posted a surplus of $4,3 million, lower than the $5,5 million recorded in the prior year.
"Current year performance was weighed down by significant write-downs in respect of non-performing contribution receivables as certain member firms had not serviced their accounts for lengthy periods," said the chairman.
During the period under review, CIMAS' membership increased by 1 percent to 203 481, which management attributed to viability problems on the part of some long-standing members and firms.
Source - BH24
