Press Statement: Health Squared Medical Scheme put under liquidation

The Council for Medical Schemes (CMS) notes the Gauteng High Court judgement delivered by His Lordship Justice Hopkins on 17 February 2023; to place the whole of the business of Health Squared Medical Scheme under final liquidation in terms of sections 51(5)(e) and 53 of the Medical Schemes Act (MSA) (131 of 1998)  read with Chapter XIV of the Companies Act (61 of 1973).

On 8 September 2022, Mr Joe Seloane was appointed the curator of the Health Squared Medical Scheme with vested powers of control and management over the scheme. Interestingly, the report by the curator uncovered factual findings; solvency ratio was 0,5% in August and by September 2022 membership numbers stood at 307. The MSA’s Regulation 29(2) is unequivocal in its application. It warrants that a scheme must maintain accumulated funds expressed as a percentage of gross annual contributions for the accounting period under review and may be no less than 25%. Health Squared Medical Scheme’s demise was decided at its Annual General Meeting on 24 November 2022. Eight (8) of the thirteen (13) attendees voted in favour of the winding up of the scheme.

The curator has completed his work and provided the Registrar with a final report. There is no reason to extend the rule nisi further only for the curator to look after a scheme that he says is “alive only on paper”.

Download the judgement here.

Download the Press Statement here.