by Laura du Preez (Personal Finance)
The levy that medical schemes pay from your contributions to fund the work of the Council for Medical Schemes is to increase by 16 percent this year rather than 24.8 percent as was gazetted earlier this year, the Registrar of Medical Schemes, Dr Monwabisi Gantsho, announced at this week’s Board of Healthcare Funder’s (BHF) conference.
The BHF had objected to the high increase, saying it would impact on schemes’ non-healthcare costs and their contribution increases.
Gantsho said Health Minister Aaron Motsoaledi and Finance Minister Pravin Gordhan have agreed to reduce the increase in the levy and to phase in the higher increase of 24.8 percent over two years. The new rates will be gazetted soon, he says.
The registrar says the reduced increase will impact on the Council for Medical Schemes’ ability to protect members.
Gantsho also said that the council is continuing to work with the National Treasury and the Financial Services Board to tackle the “serious threat” that health insurance products pose to the sustainability of medical schemes.
The registrar said work on this issue was at an advanced stage and the publication of the expected draft regulations under the Insurance Laws Amendment Act is imminent.
Published in ~Personal Finance#www.iol.co.za/business/personal-finance/med-council-levy-increase-lowered-1.1096087~