Proposed IPEC Bill Sparks Fears of Collapse for Zimbabwe’s Medical Aid Societies

By Shingirai Vambe

A storm is brewing in Zimbabwe’s healthcare sector as the proposed Insurance and Pensions Commission (IPEC) Amendment Bill of 2024 threatens to disrupt the medical aid system. The Association of Healthcare Funders of Zimbabwe (AHFoZ) has raised alarm over the Bill, warning that it could lead to the collapse of the medical aid sector.

At the heart of the controversy is the Bill’s proposal to classify Medical Aid Societies under financial services for regulation by IPEC. This change would bring medical aid societies under the same regulatory framework as insurance entities, a move that AHFoZ argues would be detrimental to the sustainability of the medical aid system.

According to AHFoZ Chief Executive, Ms Shylet Sanyanga, medical aid societies are fundamentally different from insurance companies. “Medical Aid Societies are in the business of health, focusing on a holistic approach to people’s wellbeing,” she explained. “They rely on member contributions, are predominantly non-profit, and are tax-exempt. Their primary purpose is to facilitate the funding of private healthcare services for their members, not to generate profits”.

The proposed Bill introduces regulatory oversight that may not align with the unique operational framework of Medical Aid Societies and the entire ecosystem, which includes Healthcare Service Providers. This could create a mismatch and discord that could compromise health outcomes. Furthermore, the Bill’s requirement for medical aid societies to maintain an asset register and notify IPEC prior to selling any assets would impose an unnecessary administrative burden.

The AHFoZ has also expressed concerns that the Bill’s emphasis on profit and financial compliance would shift the priorities of medical aid societies “from people to profits.” This could lead to insufficient coverage for healthcare needs, stringent global limits, and expensive medical aid contributions.

The implications of the proposed Bill are far-reaching. Medical Aid Societies have played a crucial role in facilitating access to healthcare services in Zimbabwe, with 80% of Healthcare Service Providers’ income coming from these societies. The collapse of this sector would have a devastating impact on the entire healthcare sector.

The AHFoZ has not yet been consulted on the proposed Bill and looks forward to the opportunity to give its views during a consultation. In the meantime, the organization has called for a unified regulatory authority that prioritizes the interests of healthcare citizens.

The Post On Sunday is yet to receive IPEC’s response to the ground stood by AHFoz and regarding the proposed bill.

However, one of the most pressing concerns is the growing trend of out-of-pocket payments for healthcare services. As medical aid societies struggle to keep up with the rising costs of healthcare, many patients are being forced to dig deep into their pockets to cover the costs of treatment.

This has led to a situation where healthcare has become a luxury that only the wealthy can afford. For many ordinary Zimbabweans, accessing quality healthcare has become a distant dream.

To make matters worse, medical practitioners and facilities are increasingly requesting cash payments as top-ups, further exacerbating the financial burden on patients. This has created a situation where patients are being forced to choose between paying for healthcare or putting food on the table.

The economic crisis has also had a devastating impact on the healthcare sector, with many hospitals and clinics struggling to access basic medical supplies. The shortage of foreign currency has made it difficult for healthcare providers to import essential medicines and equipment, further compromising the quality of care.

As the situation continues to deteriorate, many Zimbabweans are being forced to seek medical attention outside the country. This has not only put a strain on the country’s foreign currency reserves but also highlighted the need for urgent reform of the healthcare sector.

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