Competition Authority probes alleged medical aid "scheming"

According to the complaint, medical aid societies are accused of using their market dominance to secure flat rates in their negotiations over service fees with health care providers. The complainants say the dominance of few and powerful medical aid societies means these organisations essentially set the service fees they are prepared to pay.

Even as the enquiry gathers pace, some healthcare providers have upped the ante by pulling out of future fee negotiations and dictating industry-wide rates to the societies. The Botswana Dental Association has already thrown out an agreed increase in fees with one society for 2011 and informed it of new rates effective in September, citing the Competition Act and rising costs.