Medicines and Related Substances Control Amendment Act (Act 90)

As the representative body of medical schemes in Southern Africa, BHF is constantly focussed on the cost spiral within the private healthcare sector, and trying to curb it. BHF would therefore like to applaud the government for this Act, as it feels that it will have a positive impact on the private healthcare funding sector, and will go a long way to making this sector accessible to more South Africans.

BHF's oral submission will centre around the following points:

Government should not be excluded from the one exit price concept. If government is included, it will mean that the playing fields are levelled, which would make for real competition between the private and the public sectors when treating private patients.

The legislation in terms of regulating dispensing practitioners should be brought in as soon as possible and time lines should be drawn up for the implementation of this.

The legislation in terms of regulating surgicals and consumables should be investigated and implemented as soon as possible. (Actual case studies to be presented, showing the huge mark-up on costs before they reach the medical scheme member).

The Pricing Committee should contain at least 40% of members from the private sector perhaps funding sector, hospital sector and manufacturing sector.

When devising a fixed fee for distribution, cognisance should be taken of the fact that different pharmaceuticals have different transportation needs, i.e. cold storage etc.

The essential Drugs list should be expanded to include the formularies used by all medical schemes.

Lists of medication that the respective statutory councils have in principle approved for the various professionals (other than doctors and dentists) when they become legal dispensers should be made available publically so that benefit structures and rules can be accurately developed.

Would the fact that medical schemes are required, in terms of the proposed regulations, to develop preferred provider networks that are cost effiecient, not perhaps put the dispensing practitioners at an unfair advantage in that they would not receive the professional fee which the pharmacy would receive and therefore be able to offer the entire service for less?