Secondary

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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