News

Schemes Could Face Legal Action Over Racial Profiling Allegations

14 Jul 2025

The CMS warned that it may take legal action against medical schemes following the inquiry’s findings,Business Day (14 July 2025)
In a briefing to Parliament's health committee, the CMS described the findings of the Section 59 panel report as "distasteful".
According to John Letsoalo, the head of legal affairs at the CMS, the council may decide to approach the Equality Court. Another option would be to facilitate a class-action lawsuit on behalf of the practitioners who have been negatively impacted, demanding hefty penalties on guilty medical schemes.
Health Minister Aaron Motsoaledi confirmed his department would seek legal counsel on implementing penalties, which would likely require legislative amendments.

The Section 59 panel's investigation, which analysed data from 2012 to 2019, found that black healthcare providers were subjected to a disproportionately higher likelihood of being investigated and penalised for alleged fraud, waste, and abuse compared to their white colleagues.

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