Discovery to be sued over ‘illegal fees’

It says Wynand Venter, who runs Wynsam Health, is inviting thousands of members of Discovery who paid the ancillary fee to join his suit against SA\'s biggest medical aid provider. Venter says he complained about the fee and Discovery stopped it in 2005. He says he is bringing the suit ‘because an injustice was committed’. He says Discovery billed individual members and groups of less than 35 an extra fee called an ancillary fee. He claims it was not paid to the medical scheme but to the administrator for extra services. Wynsam Wealth, an independent financial planning practice registered with the Financial Services Board and Council of Medical Schemes, has taken senior counsel\'s opinion and says it was told Discovery had most certainly contravened applicable laws. ‘This fee and the way it was collected is illegal in terms of the Medical Schemes Act, Section 21A, according to Venter.’ However, Discovery’s Alan Pollard rejected the claim. He said a fee of R39 pm was levied on individuals and small groups of less than 54 members for services which were not in the normal scope of medical aid services. Pollard said the fee was stopped in 2005 because it was incorporated into the agreement with the Medical Schemes Agreement. Full Moneyweb report