Healthcare Broker fee increase

The Council for Medical Schemes (CMS) issued a circular yesterday with regards to an increase in the broker fee as stated below.

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). R90.00, 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."