The Board of Healthcare Funders (BHF) on Friday urged medical aid schemes not to pass on temporary price increases of medication to their customers.
The introduction last week of the Medicines and Related Substances Act, which abolishes discounts on medicines, has led to an increase in the price of medication, and fears that medical aid administrators will increase fees to cover this.
However, BHF spokesperson Heidi Kruger said: ”The BHF has issued guidelines to its member schemes to ensure that until such time as the single exit price [SEP] has been finalised, medical scheme members should not be paying more for pharmaceuticals.”
The SEP is the actual price of drugs leaving the manufacturer, without discounts, rebates or mark-ups, which is expected to be introduced in August.
Kruger said the BHF urged member schemes not to pass the increases on to their members because it is envisaged that they will be offset against future savings.
”At BHF we recognise that this [the current increase] is an interim arrangement, which will last only for a few weeks until the SEP comes into force. Then the mark-up approach will become redundant and the dispensing fee system will become effective.”
The BHF also advised member schemes to negotiate new contracts with service providers so that members of medical schemes are not liable for co-payments.
Earlier, a company that provides computer software to pharmacists said that software vendors will have to rewrite all of their software to reflect the new pricing adjustments.
Gordon Matheson, a director of CKS, said: ”This is a massive task in terms of money and resources. But this is only part of the problem. The ramifications of the new regulations could devastate many pharmacies and pharmacy wholesalers.”
Of prime concern is the introduction of a reduced dispensing fee of 16% — capped at R16 for schedule one and two medicines such as headache pills sold without a prescription.
For medicines sold with a prescription, the fee will be 26% — capped at R26.
Matheson said the new regulations contained in the Medicines and Related Substances Act were ”rushed into law” and warned of ”absolute mayhem” if there are no ”fundamental compromises”.
The Pharmaceutical Society of South Africa and the National Association of Pharmaceutical Wholesalers have already expressed concern over the future viability of their businesses and have taken legal advice on the regulations. — Sapa