Dear Valued Intermediary,
In my previous communication, I provided an update on Kaelo’s response to Circular 56 of 2020. On 9 April 2021, the Council of Medical Schemes (CMS) issued revised exemption conditions to Circular 56 in Circular 22 of 2021.
In order to address the Circular 56 of 2020 requirements, Kaelo focused on finding suitable solutions to two key issues:
- Commission earned by intermediaries selling affordable health insurance policies and the impact on distribution and servicing of the existing customer base;
- Unbundling of insurance products.
Circular 22 of 2021 provides a direct response to Circular 56 of 2020 noting a number of matters which still need to be addressed when considering the elements described in Circular 56. Kaelo, as an exempt entity, and Kaelo Prime Cure, a registered managed care organisation, have therefore been requested to provide key information in response to the updated
When considering the extensive experience Kaelo has in this sector of the healthcare market and our representation on a number of CMS workstreams, we are in a strong position to submit our evidence-based proposals to the CMS before the submission date of 31 December 2021.
Considering the impact of Circular 22 of 2021, all Kaelo products remain in force and our strong network coverage remains in place. All premiums collected on all products and all commission paid to intermediaries will remain as is.
Kaelo, in partnership with you our valued intermediaries, remains committed to providing innovative, essential, healthcare solutions enabling the physical and psychological well-being of all South Africans.
We will continue to communicate as and when there are developments. Thank you for your ongoing support.