Premier Service Medical Aid Society members will now have to fork out cash when they visit service providers after the society instructed them to demand cash upfront as part of a strategy to avoid further litigation. PSMAS is being sued by service providers for defaulting on settling claims.
Members, who will visit the more than 30 health service providers who have been instructed not to accept the society’s medical aid packages, will then have to apply for reimbursement.
The health service providers sued PSMAS for defaulting on settling claims, but the medical aid society said stopping them from treating patients on its medical aid was part of its strategy to avoid further litigations at a time it was facing grounding liquidity challenges.
PSMAS interim manager Gibson Mhlanga yesterday confirmed the move and revealed that the society faced about $8 million in litigation since December last year.
This has been necessitated by failure by member organisations to remit subscriptions to the institution timeously. Mhlanga said the embargo was only aimed at service providers who sued the society.