AHFoZ pushes for dedicated Health Fund Regulator

THE Association of Healthcare Funders of Zimbabwe (AHFoZ) has called on the Ministry of Health and Child Care to expedite the finalisation and implementation of the Medical Aid Societies Regulatory Authority Bill, saying moving medical aid societies under the Insurance and Pensions Commission (IPEC) could destabilise the healthcare sector.

In a position paper on the IPEC Amendment Bill HB7 of 2024, AHFoZ argued that medical aid societies operate in the business of health, not financial services, and therefore require a regulator with healthcare expertise rather than prudential oversight.

AHFoZ, formed in 1969, is the umbrella body for Medical Aid Societies in Zimbabwe.

The association represents an industry that has existed since 1930 and currently covers approximately 1.7 million lives, representing 10 percent of the population.

Medical aid societies contribute an estimated 80 percent of income for healthcare service providers in the country.

“Since medical aid societies are in the business of health (social), not financial services, strengthening of governance systems could be achieved within the same context

“Therefore, the finalisation of the Bill to introduce a Medical Aid Societies Regulatory Authority would address the governance gaps without impacting on the major industry goals which are centred on people’s wellbeing,” reads AHFoZ statement.

The association argued that the Ministry of Health already has a clear legal mandate under the Public Health Act to oversee health financing and medical aid societies, adding that transferring oversight to IPEC could lead to duplication of skills.

“IPEC does not currently employ healthcare professionals with the specialised knowledge required to effectively regulate medical aid societies. This amounts to re-inventing the wheel instead of strengthening what already exists,” the association said.

AHFoZ further said removing medical aid societies from the Ministry of Health’s oversight risks destabilising the healthcare ecosystem.

“Health being a social sector, the aspect of conflict resolution between healthcare service providers, patients and funders is important and should be handled by an authority with the requisite technical skills,” the association said.

Citing regional examples, AHFoZ said South Africa’s medical aid industry is regulated by the Council for Medical Schemes operating under the Ministry of Health, not the financial services regulator.

“As AHFoZ, we firmly believe that establishing this dedicated regulatory authority, specifically focused on the unique needs and dynamics of medical aid societies, would help foster sustainability of the medical aid industry to focus on its core mandate,” the association said.

“Due to the ‘rub-on’ effect, this would benefit the entire health sector, and the nation.”

The association urged the Ministry to finalise the Bill, arguing that governance challenges in the sector can be addressed through systemic reform within the existing health regulatory framework rather than a complete substitution of the regulator.