Mixed reactions over the Insurance and Pensions Commission Amendment Bill

This emerged today at the Association of Healthcare Funders of Zimbabwe (AHFoZ) breakfast meeting to deliberate on the IPEC Amendment Bill of 2024 that was held at the Holiday Inn Hotel in Harare.

In a speech for the Chairperson of the Parliamentary Portfolio on Health, Hon. Josiah Makombe, that was read by his deputy, Hon Judith Tobaiwa, legislators deem it crucial for IPEC to stay at the forefront of emerging trends and standards in the insurance sector.

“The Insurance and Pensions Commission Amendment Bill presents a pivotal opportunity for transformative change in Zimbabwe’s insurance, pensions, and medical health sectors. This legislation significantly enhances the regulatory authority of the Insurance and Pensions Commission (IPEC) by incorporating oversight of medical aid societies, thereby establishing a robust and comprehensive regulatory framework.

“As the landscape of regulation evolves, it is crucial for all stakeholders in the insurance, pensions, and medical health industries to recognize and embrace the profound implications of the changes introduced by this Bill. This is an essential step toward fostering greater accountability, transparency, and consumer protection within these vital sectors,” the Chairman of the Parliamentary Portfolio Committee on Health said.

In giving an overview of the medical aid industry, Mr. Stanford Sisya, the AHFoZ Chairman, said the challenges facing the healthcare sector require solutions that are driven by those within the sector, not imposed by external bodies unfamiliar with its complexities.

“We believe that a more constructive approach would involve enhanced collaboration between IPEC and the Ministry of Health and Child Care, such as sharing insights on prudential matters, rather than a disruptive and potentially detrimental restructuring of the regulatory landscape.

“In light of these critical considerations, we strongly urge the Ministry of Health and Child Care (MoHCC) to expedite the finalization and implementation of the “Medical Aid Societies Regulatory Authority” Bill. As AHFoZ, we firmly believe that establishing this dedicated regulatory authority, specifically focused on the unique needs and dynamics of medical aid societies, is the most appropriate path forward.

“In conclusion, I wish to reiterate that as a nation, our unwavering priority must be the health and well-being of our people. This fundamental objective should always take precedence over purely financial considerations,” he said.

Mr. Philmon Chereni, speaking on behalf of the Consumer Council of Zimbabwe (CCZ), Chief Executive Officer, Mrs Rose Mpofu, said he was optimistic that the new bill will improve communication with policyholders.

“For example, insurers and pension funds will be required to communicate clearly and effectively with policyholders and pensioners, helping them to understand their products and make informed decisions. One of the issues that CCZ feels will be enhanced by the new bill for human protection, the bill seeks to strengthen the regulator framework, ensuring that insurance companies and pension funds operate in a fair, transparent manner in protecting policyholders’ and pensioners’ interests.

“Granted, we sympathize with what AHFoZ is saying in terms of the health sector regulatory complexities, but as consumers, we feel something must have happened that has prompted the introduction of this new bill. As consumers, we feel increased accountability will be to the benefit of consumers. The new bill also will rather ensure that there is better supervision of insurance products, among other changes that the bill seeks to put in place,” he said.

He added that there is also going to be increased transparency and disclosure in the insurance and pension industry, enabling consumers to make informed decisions about their products.

Advance Masarirevhu from the Private Healthcare Association of Zimbabwe said the bill allows the Ministry of Health to look at the social aspect of health, making sure that everyone has access to health.

“But when you look at IPEC, they also focus on the economy or the financial aspect. They have the expertise to look at the financial performance, and financial position of the funders so that they can be scrutinized and make sure that things are done so that they protect the consumers. The Bill is focusing more on the financial aspects.

“The other issue is that the tariffs provided by medical aid societies may be lower resulting in shortfalls for the patients. We don’t want the patients to suffer when they visit our hospitals. We want to treat them without paying anything extra but because medical aid failed to pay their agreed rates, sometimes they have shortfalls. For us, it will negatively affect the customer,” Masarirevhu said.

He added that the fact that medical aid societies are investing in hospitals, pharmacies, and labs results in a conflict of interest and insisted that they should focus on funding service providers.

“That is a big concern. There is also the record of countries where we have seen that medical aid societies are directing patients where to go instead of letting the patient choose the quality services we provide.”

Dr. Musvo Mapfanyangira, the Secretary-General of the Zimbabwe Medical Association, said the bill should prioritize the welfare of the patients.

“What has prompted this particular discussion/sit down? Whatever we are doing, is it for the patient? I would like to start by talking about how one day someone said to us, at some point, the health industry is going to be made corporate. But to what expense? What are we doing when we are looking at the health industry? I always start by saying, one day we are going to be patients. As a service provider, I have been a patient before.

“As a healthcare provider, I have a medical aid as well. I’ve had to re-look at certain medical aids and say, would I want to be a member of this particular medical aid? We are for regulation, governance, and transparency whilst looking at the ultimate benefit for the patient. Whatever is done has to consider all aspects affecting healthcare delivery, including all stakeholders.”