The Council for Medical Schemes (CMS) recently published Circular 7 of 2020 which contains the details on the adjustment of fees payable to brokers. The Minister of Health has approved an increase on the maximum fee that is payable by medical schemes to brokers with effect from 1 January 2020. Regulation 28(2) published in terms of the Medical Schemes Act, now effectively states that the maximum fee is:
a) R98.85 plus value added tax (VAT) per month; or
b) 3% plus value added tax (VAT) of the contributions payable in respect of that member, whichever is the lesser.
FSPs licensed for Health Service Benefits are reminded to adjust the fees on all documentation which discloses this commission to clients.