– Adjustment of broker fees
The Council for Medical Schemes published Circular 4 of 2019 containing the details of the increase in broker fees.
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) R94.77, 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 the circular.