Medical Schemes Brokers Fee Increase

The Minister of Health has determined that the current capped maximum fee of R69 plus VAT will increase to R71,07 plus VAT with effect from 1 February 2014.

This increase of 3% should go a long way in helping advisors to cover the ever increasing cost of staying in business, and being compliant. The latter is probably more on a par with medical inflation than with the fixed annual percentage.

Trying to curb the cost of healthcare by saving on the provision of sound advice is a costly mistake. There are no prizes for guessing who the biggest loser in this deal will be.

One broker that I spoke to about the cap on medical schemes commission commented:

“I would probably make more money mowing the lawn at Nkandla.”


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