The Council for Medical Schemes (CMS) has once more granted health insurance companies a two-year extension until March 31, 2027, allowing them to operate under a framework that allows low-cost benefit options (LCBOs). Business Day (1 April 2025)
“These affordable medical scheme packages don’t need to cover all conditions specified under the Medical Schemes Act.
“The extension allows 11 licensed insurers to continue operating with fewer restrictions, but no new health insurance licenses have been issued since 2017. The regulations (introduced in 2017) seek to, which are governed by different authorities.
“Proponents argue that LCBOs could relieve state healthcare by offering primary coverage to low-income workers. However, Minister Aaron Motsoaledi has raised concerns about their practicality and alignment with National Health Insurance (NHI).”