Conmed liquidated and members moved to Bonitas

Organisation: Position: Deadline Date: Location:

Community Medical Scheme (Commed) is to be liquidated, and its 11,000 members moved over to Bonitas Medical Scheme, Business Day reports the Council for Medical Schemes (CMS) has announced.

Commed was placed under provisional curatorship on 2 June 2017. At the time, the CMS said members could rest assured that the scheme was able to pay their claims. Reports subsequently compiled by the scheme’s provisional curator and its actuary indicated that the scheme was in fact insolvent, acting CMS registrar Sipho Kabane is quoted in the report as saying.

The High Court in Pretoria placed Commed under provisional curatorship in the wake of alleged governance failing after the CMS discovered alleged governance failings by its board. The apparent failures in fiduciary oversight include allowing a R1.1m bonus to be paid to Commed’s principal officer that was outside the scope of her performance agreement, and permitting illegal advance payments to the scheme’s administrator, Allcare, to go ahead.

The CMS emphasised that the liquidation of Commed was unrelated to the drive to consolidate the industry under National Health Insurance.

Kabane said Bonitas had been selected for Commed members to ensure their benefits were not compromised. They would move across with no break in their cover, he said.

The report says Commed was established in 1989 and registered initially as Bopmed to serve the former Bophuthatswana homeland.

Bonitas, which is administered by Medscheme, is the second largest open medical scheme in South Africa with about 348,000 principal members and 753,500 beneficiaries.

Business Day report

Receive Medical Brief's free weekly e-newsletter



Related Posts

Thank you for subscribing to MedicalBrief


MedicalBrief is Africa’s premier medical news and research weekly newsletter. MedicalBrief is published every Thursday and delivered free of charge by email to over 33 000 health professionals.

Please consider completing the form below. The information you supply is optional and will only be used to compile a demographic profile of our subscribers. Your personal details will never be shared with a third party.


Thank you for taking the time to complete the form.