Millions paid out in medical scam

FINANCIALLY strapped policyholders are defrauding hospital cash plans to pay off debts. Designed to fund medical bills not covered by medical aid or for income lost and childcare expenses incurred, the cash-in-your-pocket plans continue to attract fraudsters.

"While some of these cases were spurred by desperation where the money was needed to repay debt, in many other cases the goal was blatant self-enrichment," an Association for Savings and Investment (Asisa) executive said yesterday. There was a consistent increase in fraudulent claims where doctor and hospital administrator collusion was helping policyholders make claims that they were not entitled to, Asisa deputy chief executive Peter Dempsey said - Nivashni Nair