The Council for Medical Schemes (CMS) is proposing to increase its annual levy on medical schemes by 7.97% in the 2023/24 financial year.
The levy will increase by R3.51, from R44.06 to R47.57 per principal member per year, according to Notice 1385 published in the Government Gazette on 4 November.
The proposed 7.97% increase is significantly higher than the increases over the previous three financial years. In 2020/21, levies increased by 4.49% (R1.74). They increased by 4.6% (R1.86) in 2021/22 and by 4.23% (R1.79) in 2022/23.
The CMS, which receives 90% of its revenue from levies, has budgeted for levy income of R193.4 million in 2023/24, which is 8.3% more than the R178.564m for which it budgeted in 2022/23.
The regulator’s latest annual report, for the year to the end of March 2022, shows that the CMS received R170.035m in levies in 2022.
For the first time in three years, the CMS reported an accumulated surplus, of R2.256m, at the end of its 2021/22 financial year.
Comments on the proposed levy increase must be submitted to the Registrar of Medical Schemes, Dr Sipho Kabane, by 2 December. Submissions can be emailed to s.mnyatheli@medicalschemes.co.za or posted to Private Bag X34, Hatfield, 0028.
