Discovery Health Court Case
Discovery Health is about to be sued on behalf of many past and current members of the Discovery Health Scheme. This action is part of an effort to reclaim members’ money illegally billed by Discovery Health. You might also be in line for a refund of this money.
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on Friday 23 March click
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What is this about?
Are we sure about this?
What does the law say?
How can you join the action to get your money back?
Will you be liable for any costs?
Has Anyone Succeeded at This?
Must I be a Wynsam Wealth Client or Sign up as one?
Discovery Health billed individual members and groups of less than 35 members an extra fee called the ancillary fee. They did not charge large groups this fee. This was illegal. They stopped this practice in 2005 after the issue was highlighted. However stopping a practice does not mean Discovery Health should get away with it. They have illegally charged their members close to R114 000 000 per year.
Yes. We have taken senior legal counsel’s opinion about the conduct of Discovery Health and we were informed that they have most certainly contravened the applicable laws.
In terms of section 29(n) of the Medical Schemes Act no medical scheme
may charge different rates to different people based on arbitrary conditions.
They may only vary one’s contribution rate based on income and number
of dependants. No other reason for variation is allowed, such as the size
of the group. Section 21A reads:
(2) The admission of a person as a member or dependant of a medical scheme may not be made directly or indirectly conditional upon that person purchasing or participating in any product, benefit or service provided by a person other than the medical scheme in terms of its rules.
(3) It is an offence to market, advertise or in any other way promote a medical scheme in a manner likely to create the impression that membership of such medical scheme is conditional upon an applicant purchasing or participating in any product, benefit or service provided by a person other than the medical scheme in terms of its rules.
We are confident that Discovery Health did create such an impression as is contemplated in section 21(A)(3) of the act. We have gathered sufficient evidence to prove this. They did not inform members that this so called “service” was optional. They made it look as if the ancillary service fee was compulsory. Even their own staff was under the impression that the fee was compulsory. After Discovery was made aware of the illegality of this practice they persisted with it for a considerable period of time.
Wynsam Wealth is going to sue Discovery Health on behalf of members who were overcharged. You can sign a "power of attorney" for them to act on your behalf to get your money back. More than 244 000 people are affected. The power of attorney can be found here. Complete it and return it to us via fax on 033 3443047 or email to firstname.lastname@example.org
No, the costs of the legal application will be financed by Wynsam Wealth.
Yes, a case was brought against Discovery and they paid out! (Case 57775/04 Randburg). Discovery admitted no liability, however, and therefore we are forced to sue them to get your money back. Discovery has not made any attempt to repay the ancillary service fees without being sued. For obvious reasons we will demand repayment of all interested parties’ monies before we proceed with legal action. For a copy of the settlement Discovery paid out and the court records thereof click here. For a copy of the papers filed during the case click here.
You don't have to be an existing client or a future one. Any member of Discovery Health can join this action.
Has anybody succeeded at this? View the Discovery payment.
View the court papers filed during the case.
To listen to our radio interview on SA FM on Friday 23 March click here
Contact Me about the Case
Tel: 0860 103816 Fax: 088 033 345 8366
F.S.P No.13569 C.M.S No.1569 CK 2001\039852\23
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