The Council for Medical Schemes (CMS) has published its 2022 Industry Report, which provides detailed information about the industry and individual schemes in terms of membership, benefit payments, and financial performance.
The report shows that 87.81% of members of open schemes were covered by broker arrangements in 2022, compared with 10.63% of members of restricted schemes.
Of the schemes that pay broker commissions, the amount paid per average member per month (pampm) was R101.43; R103.17 pampm in respect of open schemes and R81.56 pampm in respect of restricted schemes.
The average commission of R101.43 was 86.54% of the statutory limit of R117.20 pampm gazetted on 1 March 2022.
Broker costs increased by 8.89%, from R2.52 billion in 2021 to R2.75bn in 2022 (2021: decrease of 0.70%).
Broker costs represented 14.54% of schemes’ total non-healthcare expenditure in 2022, while accounting for 14.23% in 2021.
Broker fees as a percentage of gross contribution income increased slightly from 1.12% in 2021 to 1.18% in 2022.
The table below shows the broker costs pampm by scheme:
The table below shows the schemes whose broker service fees were higher than the industry average of R101.43 pampm in 2022. These seven schemes represented 82.10% of total membership that paid for broker service fees, and 86.66% of the total broker service fees paid.
Click here to download the Industry Report.
Click here to download the annexures to the report.
