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.”
