Circular 16 of 2026: Invitation for Comments on the Revised Accreditation Standards for Administrator and Managed Care Organisation “Evergreen Contracts”

The Council for Medical Schemes (CMS) is currently reviewing the Administrator and Managed Care accreditation standards relating to so-called “Evergreen contracts”. This initiative seeks to address specific concerns regarding these contracts, alongside issues highlighted by the Health Market Inquiry.

The CMS is concerned with these contracts for the following reasons:

• Lack of periodic assessment of performance and market testing to ensure cost effectiveness, innovation and value for money.
• They weaken medical scheme oversight and governance mechanisms since the administrators may have undue influence over the board of trustees.
• They create uncertainty regarding the termination date arrangements in instances where the medical scheme intends to test the market or go out on a procurement process.
• They create an oligopoly market structure and potentially restrict new administrators from entering the market.

Stakeholders are hereby invited to provide detailed comments on the revised accreditation standards in the Circular by email to Ms Hannelie Cornelius via email at h.cornelius@medicalschemes.co.za by Friday, 26 June 2026.