Medical Schemes – Broker fees increased

The Council for Medical Schemes (CMS) recently announced the approval of an increase in the maximum amount payable to brokers in terms of Section 65 of the Medical Schemes Act (131 of 1998). The revised amount is now R101.91 plus value added tax (VAT) – the 2020 fee was R98.85 plus value added tax (VAT). The effective date of implementation is 1 January 2021 and beyond.

Regulation 28(2) published in terms of the Medical Schemes Act, now effectively reads as follows:

“Subject to sub-regulation (3), the maximum amount payable to a broker by a medical scheme in respect of the introduction of a member to a medical scheme by that broker and the provision of ongoing service or advice to that member, shall not exceed –

a) R101.91, plus value added tax (VAT) per month, or such other monthly amount as the Minister shall determine annually in the Government Gazette, taking into consideration the rate of normal inflation; or

b) 3% plus value added tax (VAT) of the contributions payable in respect of that member, whichever is the lesser.”

Click here to download Circular 18 of 2021.

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