Home South African Approved levy for medical schemes now totals R42.27

Approved levy for medical schemes now totals R42.27

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The government gazette this week said it had imposed a levy of R38.67, with the Council for Medical Schemes (CMS) imposing a levy of R3.60. Picture: Toby Talbot

The government gazette this week said it had imposed a levy of R38.67, with the Council for Medical Schemes (CMS) imposing a levy of R3.60 being an adjustment to the levy published in the above gazette, taking the approved levy to R42.27.

The government gazette this week said it had imposed a levy of R38.67, with the Council for Medical Schemes (CMS) imposing a levy of R3.60 being an adjustment to the levy published in the above gazette, taking the approved levy to R42.27.

The was published in Notice 513 of 2021 on Government Gazette 45099 on the imposition of levies for medical schemes for the 2021/22 financial year.

Last month, CMS recommended that medical schemes contribution increases be limited to 4.2 percent in 2022.

In a circular sent to schemes then, the regulator said that this was in line with the National Treasury’s projected Consumer Price Inflation (CPI) increase.

“In instances where it is economically feasible to implement a lower contribution increase than the CMS recommended CPI-linked rate, Trustees are encouraged to adopt innovative pricing models, subject to an independent actuarial evaluation,” it said.

The CMS said at the time it was also cognisant of the heightened uncertainty regarding the impact of the pandemic on healthcare claims costs, as well as how quickly member’s health-seeking behaviour would normalise.

“As such, pricing decisions for the 2022 benefit year should be largely data-dependent and sensitive to the demographic risk profile and financial position of each scheme.”

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