BHF Northern Region Meeting

1
BHF Northern RegionMeeting

• Legal Opinion National Credit Bill
• 24 March 2006

2
BHF Questions

• In the event of an inconsistency between the
  Medical Scheme Act and the National Credit Bill
  which Act takes precedence?
• To what extent and how can we leverage on the
  fact that the insurances have been given the
  exemption ?
• Can BHF engage in a Court Challenge or should it
  be the Medical Aid Schemes themselves ?

3
Legal Opinion

• The inconsistency may not be a conflict as that
  term is used in the Medical Scheme Act. The
  Medical Schemes Act may not prevail, will only
  prevail if there is a clear conflict and not
  merely an inconsistency.
• Cannot leverage on the fact that insurance is
  exempt.
• Best approach is to apply to the Minister for the
  provision of Section 11 of the Bill by declaring
  Medical Schemes and MSA a public interest credit
  agreement

4
Next Steps

• Ask Legal team to apply for the provision of
  Section 11
• Engage CMS on the issue.
• Engage DTI on the issue.
• Await response.