ACTING COMMISSIONER RESPONDS TO FUND’s FAILURES
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Dear NEASA reader
In the aftermath of NEASA’s recently published survey on the Compensation Fund’s (‘the Fund’) failures, pertinent issues affecting stakeholders across the board, as delineated from the survey, were subsequently addressed in a letter to the Acting Commissioner of the Fund (click here to view).
Surprisingly, and for the very first time in years of fencing between NEASA and the Fund, a response thereto was received from the recently appointed Acting Commissioner. The response addresses four pertinent issues:
• Cash flow issues for Medical Service Providers (MSPs)
The Commissioner acknowledges the cash flow concerns faced by MSPs. Encouragingly, she states that a robust process is in place, both at provincial level and at its Head Office, to engage third parties and MSPs regarding payment delays, which has yielded positive results, serving as a platform for the Fund to actively address and resolve payment issues faced by stakeholders. Further details of this process however are not provided.
• Reputational damage from the institution of legal proceedings by creditors and injured employees
While the Commissioner acknowledges the reputational damage caused by legal proceedings initiated by creditors and injured employees, she highlights a significant challenge faced by the Fund. According to the Commissioner, the delay or non-submission of legislated documents by employers and MSPs hinders the Fund’s ability to effectively adjudicate claims and process benefits.
• Delay with the issuance of Letter of Good Standing (LOGS)
In a surprising turn of events, the Commissioner announced that the Fund no longer issues LOGS upon individual requests from employers. Through the introduction of the ROE online system, employers can now access and download their LOGS conveniently at their own discretion.
• Decreased economic activity as a result of business closures
The Commissioner blames the non-submission of legislated documents by employers and MSPs when submitting claims as the reason behind delayed turnaround times when processing claims. This has resulted in business closures and a decrease in economic activity.
In an attempt to improve service delivery, the Commissioner expressed her willingness to engage further with stakeholders.
NEASA will utilise this opportunity to address the allegations of the Commissioner highlighted in red above, and consequently we request employers, employees, 3rd party administrators and MSPs to submit their commentary on the Commissioner’s statements by clicking here.
For more information:
NEASA Media Department