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Circular 9 of 2023: Adjustment on fees payable to brokers with effect from 1 January 2023

The Council for Medical Schemes (CMS) hereby confirms that the Minister of Health, Dr Joe Phaahla, has approved an increase on the maximum amount payable to brokers in terms of Section 65 of the Medical Schemes Act (MSA) (131 of 1998). The revised amount is now R111,18 plus value added tax (VAT).

The effective date of implementation in respect of contributions received by medical schemes is 1 January 2023 and beyond as per Government Gazette, Notice No 1629 dated 24 February 2023.

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 –

  1. R111,18 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
  2. 3% plus value added tax (VAT) of the contributions payable in respect of that member, whichever is the lesser.”

Download the Circular here.