Wynsam tackles Discovery Health and Wins!

At Wynsam we believe in adhering to the highest standard of integrity and honesty. We expect it from our staff and also from the companies that we do business with.

Discovery Health Pty Ltd is a company separate from the Discovery Health Medical Scheme. It does the administration of the well known Discovery Health medical scheme. The medical scheme is a non profit organization owned by the members, the Pty Ltd is not.

The Medical Schemes Act is the piece of legislation that governs medical schemes. Its purpose is to protect
medical schemes and their members from abuse. A copy of it can be found here.

In terms of section 29 n of the Act no medical scheme may charge different rates to different people based on arbitrary conditions. They may only vary ones contribution rate based on income and number of dependants. No other reason for variation is allowed including the size of the group.

Section 21 A states:

(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

Yet is appears that this is what happened at Discovery Health. They persisted in the charging of an extra fee to members who were either individuals or part of groups of 35 or less. In all about 244 000 members were charged this fee. 244 000 multiplied by R 468 per member per year is a lot of money.

Discovery Health Pty Ltd collected this fee - not for the scheme but for other “services rendered” by themselves to the members. They did not inform members that is was optional. They made it look as if this was compulsory. They were made aware of the illegality of this practice yet persisted with it.

Wynsam Wealth helped bring this to the press’s attention. See here for the original article.(warning large file). We are proud of the part that we played in getting Discovery Health to stop this illegal collecting of fees. By stopping this fee we saved South Africans R144 million per year. We will continue to fight on behalf of, not only our own clients, but also the general public’s best interest.

Wynsam Wealth is proud, passionate, and committed. One of our clients once said of us that we were a cross of Jack Russell and a Rhino in animal kingdom speak. Tenacity and steadfastness rolled into one. Would you not like such a creature on your side?

To read the original newspaper article that featured in 'the Independant' click here.
This article is in PDF format and is 542 KB

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