On 25 January 2016 the Minister of Health issued a Government Notice announcing that the maximum amount payable to brokers in terms of Section 65 of the Medical Schemes Act, as amended, has increased to R80.00 plus VAT with effect from 1 January 2016.
This is an increase of 6.7% which is slightly ahead of the average annual consumer price inflation of 4,6% in 2015 (i.e. the average CPI for all urban areas for 2015 compared with that for 2014).
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:
- R80.00 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
- 3% plus value added tax (VAT) of the contributions payable in respect of that member, whichever is the lesser.”