Voortrekker Apteek BK v Fedhealth Medical Scheme and Others (485/2010) [2010] ZAFSHC 58 (17 June 2010)

Voortrekker Apteek BK v Fedhealth Medical Scheme and Others (485/2010) [2010] ZAFSHC 58 (17 June 2010)

The court held that the scheme operated by the first and second respondents, which designates Medi-Rite as the preferred pharmacy and imposes a 40% co-payment for members who obtain chronic medication from other pharmacies, is expressly authorised by Regulation 8 of the Medical Schemes Act. The scheme does not...

Source-derived case information.

Citation
[2010] ZAFSHC 58
Parties
Applicant: Voortrekker Apteek BK; Respondent: Fedhealth Medical Scheme; Respondent: Johan Henning (Edms) Bpk h/a Medi-Rite; Respondent: Die Raad van Mediese Skemas
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Case Number
485/2010
Procedural Posture
Urgent Application / First Instance Judgment
Outcome
Application dismissed with costs, including costs of two counsel for the first respondent.
Judges
Kruger R
Legal Topics
Prescribed Minimum Benefits, Designated Service Provider, Bonus and Discount Schemes, Statutory Interpretation, Regulatory Conflict
Administrative Law Civil Procedure Prescribed Minimum Benefits Designated Service Provider Bonus and Discount Schemes Statutory Interpretation Regulatory Conflict

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Summary, issues, holding and outcome

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Parties

Voortrekker Apteek BK

Applicant

Fedhealth Medical Scheme

Respondent

Johan Henning (Edms) Bpk h/a Medi-Rite

Respondent

Die Raad van Mediese Skemas

Respondent

Procedural Posture

Urgent Application / First Instance Judgment

  1. 1 Whether the scheme operated by the first and second respondents constitutes a prohibited bonus, discount or incentive scheme under section 18A of the Medicines and Related Substances Act 101 of 1965.
  2. 2 Whether Regulation 8 under the Medical Schemes Act 131 of 1998 authorises the scheme and overrides section 18A in the event of conflict.
  3. 3 Whether the 40% co-payment imposed on members who obtain chronic medication from non-designated service providers is lawful.

Ratio Decidendi

The court held that the scheme operated by the first and second respondents, which designates Medi-Rite as the preferred pharmacy and imposes a 40% co-payment for members who obtain chronic medication from other pharmacies, is expressly authorised by Regulation 8 of the Medical Schemes Act. The scheme does not constitute a bonus, discount, or incentive scheme as prohibited by section 18A of the Medicines Act, since the price of medicine is regulated and uniform across pharmacies. Any conflict between the Medical Schemes Act and the Medicines Act is resolved in favour of the Medical Schemes Act by virtue of section 2(1). The applicant's argument that the scheme makes medicine more...

Court Disposition

Application dismissed with costs, including costs of two counsel for the first respondent.

Orders

  • The application is dismissed with costs.
  • Costs for the first respondent include the costs of two counsel.