Dis-Chem has defended its health insurance partnership with Centriq and Kaelo after a ruling by the Council for Medical Schemes (CMS). The pharmacy retailer says the decision clarifies the process. It argues it is not a warning shot against retail-led healthcare models.
The CMS found that changes to the branding and presentation of Centriq’s MyHealth insurance products under the Dis-Chem name created the impression that they were a new product. The regulator said the company failed to submit those changes for formal approval. The core issue was not benefits or underwriting. Market-facing materials defined the products' positioning.
That matters because Dis-Chem is increasingly presenting pharmacies as an entry point into primary care and wellness services. It also wants to link these touchpoints to healthcare funding products. The ruling raises a broader question for the sector. How far can a large retail brand extend its name across regulated health products without triggering extra scrutiny?
What Dis-Chem MyHealth Partnership Says The Ruling Means
Dis-Chem says the CMS did not challenge the legality of the MyHealth products. It also says the ruling does not reject the principle of white-labelling, where an insurer markets a product under a partner’s brand. The group stresses that they always disclosed the insurer.
Dis-Chem says no customers lost cover and no benefits changed. It adds that the products are now presented in full compliance. In its view, the decision reinforces a key compliance point. Branding and presentation can count as a material regulatory change, not a cosmetic marketing tweak.
Centriq underwrites the products, and Kaelo administers them. Both firms have said they were clearly identified across customer touchpoints. This includes policy documents, terms and conditions, and marketing material.
Why The Decision Lands At A Sensitive Moment
The ruling arrives as private healthcare becomes increasingly unaffordable for many South African households. Public facilities are also under strain. Dis-Chem estimates that about 17% of the population is enrolled in private medical schemes. That leaves most people dependent on the public sector or without formal cover.
Dis-Chem positions MyHealth as a gap-bridging product. It says it supports affordable access and encourages appropriate use of care. It also points to market conduct indicators that, it claims, demonstrate strong and appropriate use. The group says there is no evidence of customer confusion or mis-selling.
Dis-Chem MyHealth Partnership And The Business Model Behind It
Dis-Chem began expanding into healthcare funding in 2021, when it acquired a 25% stake in Kaelo Group. In 2022, it launched medical insurance and gap cover for individuals under the Dis-Chem Health brand. Kaelo continued to focus on the corporate market.
The offering is designed for everyday healthcare needs rather than catastrophic events. Benefits include nurse-led care, virtual and in-person GP consultations, medication, basic dentistry and optometry, preventive screenings, and mental health support. Dis-Chem says this integrated model can lower costs and expand access. It also aligns with South Africa’s longer-term universal healthcare ambitions.
The CMS has also warned, including via Circular 48, that exempted insurers must follow strict processes when making changes. Non-compliance can trigger enforcement action, including penalties or withdrawal of exemptions.
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