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1 Government Gazette Staatskoerant REPUBLIC OF SOUTH AFRICA REPUBLIEK VAN SUID-AFRIKA Vol. 594 Pretoria, 19 December Desember 2014 No N.B. The Government Printing Works will not be held responsible for the quality of Hard Copies or Electronic Files submitted for publication purposes AIDS HELPLINE: Prevention is the cure A

2 2 No GOVERNMENT GAZETTE, 19 DECEMBER 2014 No. CONTENTS INHOUD Page No. Gazette No. GENERAL NOTICE Health, Department of General Notice 1163 Council for Medical Schemes Levies Act (58/2000): Proposed supplementary levies on medical schemes GENERAL NOTICE NOTICE 1163 OF 2014 PROPOSED SUPPLEMENTARY LEVIES ON MEDICAL SCHEMES ISSUED IN TERMS OF SECTION 3(a) OF THE COUNCIL FOR MEDICAL SCHEMES LEVIES ACT (ACT 58 OF 2000) The Council for Medical Schemes referred to in Section 1 of the Council for Medical Schemes Levies Act, 2000 (Act No. 58 of 2000), hereby proposes a supplementary levy on medical schemes, as set out in this Notice. The proposed supplementary levies are due to be imposed for the purpose of meeting the expanded regulatory and administrative costs of the Council for Medical Schemes and the function performed by the Registrar of Medical Schemes. The quantum of the levy has been determined on the basis of the Council's supplementary budget, and is also based on the number of principal members of medical schemes. The full supplementary budget can be viewed on the Council website Representation on the proposed levies may be made to the Council not later than 30 January Such representation must be forwarded to the Acting Registrar of Medical Schemes, and marked for the attention of Mr. Dan Lehutjo by post to: Private Bag X34, Hatfield, 0028, via or fax (012) By order of the Council for Medical Schemes Prof Y Veriava Chairperson: Council for Medical Schemes 12 December 2014 This gazette is also available free online at

3 STAATSKOERANT, 19 DESEMBER 2014 No SCHEDULE Definitions 1 In this notice, unless the context indicates otherwise - i. "Council" means the Council for Medical Schemes referred to in the Act; ii. iii. iv. "Levy year" means the period from 01 April 2015 to 31 March 2016 and, subject to the provision of this Notice and any amendments, substitution or repeal thereof, such corresponding period in succeeding year in respect of which levies are imposed; "Registrar" means the Registrar of Medical Schemes, appointed in terms of Section 18 of the Medical Schemes Levies Act, 1998 (Act No. 131 of 1998); "The Act" means the Council for Medical Schemes Levies Act, 2000 (Act No. 58 of 2000). Proposed Imposition 2. In respect of a medical scheme registered in terms of section 20 of the Medical Schemes Act, 1998 (Act No. 131 of 1998), the proposed supplementary levy for the 2015/16 levy year shall be set at an amount of R1.70 per member per year, which shall be paid in two equal installments, the first of which shall be paid not later than 30 April of the levy year, and the second of which shall be paid not later than 30 June of the levy year. 3. In respect of the levy year, the calculation of the levy is based on the number of members referred to in item 2 shall correspond with the latest statistics furnished to the Registrar in terms of or by virtue of the Medical Schemes Act, 1998 (Act No. 131 of 1998) or with the latest certified number of members sent to the Registrar by the medical scheme. If a transfer of members is in process and not finalized on 31 December 2014, the transferor must pay the levy in respect of the members to be transferred. Payment/Interest on overdue of Levies 4. On amounts of overdue levies, interest will be charged at a rate applicable to a debt owing to the state, as determined by the Minister of Finance in terms of section 80(1)(b) of the Public Finance Management Act. 5. The levies (once finally imposed) and interest (if any) referred to in this Notice shall be paid by a medical scheme directly in the bank account of the Council, the details of which are: This gazette is also available free online at

4 4 No GOVERNMENT GAZETTE, 19 DECEMBER 2014 Bank Account Holder Branch Name ABSA Council for Medical Schemes ABSA Corporate Branch (Cnr Pretorius and Vermeulen Streets, Pretoria) Branch Code Account Number A deposit advice slip issued by the aforementioned Bank in respect of a deposit contemplated in item 5, received by the Council for Medical Schemes, and bearing the name of the relevant medical scheme, shall serve as prima facie proof of payment of a levy. Printed by and obtainable from the Government Printer, Bosman Street, Private Bag X85, Pretoria, 0001 Publications: Tel: (012) , , Advertisements: Tel: (012) , , , , Subscriptions: Tel: (012) , , Gedruk deur en verkrygbaar by die Staatsdrukker, Bosmanstraat, Privaatsak X85, Pretoria, 0001 Publikasies: Tel: (012) , , Advertensies: Tel: (012) , , , , Subskripsies: Tel: (012) , , This gazette is also available free online at

5 Table 1: CMS budget including supplementary budget 2015/16 Funding Proposal Council for Medical Schemes INCOME BUDGET 2015/16 Total levies 2015/16 Supplementary levies 2015/2016 Original levies proposed 2015/ / /14 Operational expenditure A 135,347,814 4,576, ,770, ,076, ,951,804 Capital expenditure B 5,763,898 2,033,970 3,729,928 2,422,000 2,672,000 Total expenditure C A + B 141,111,713 6,610, ,500, ,498, ,623,804 Less: Depreciation and Amortisation E 3,176,148-3,176,148 2,411,178 2,411,178 Total cash requirement F C + D - E 137,935,565 6,610, ,324, ,087, ,212,626 Surplus funds G 5,143,928-5,143,928 2,989,202 2,164,305 Accreditation fees H 5,876,000-5,876,000 5,500,000 5,700,000 Registration Fees I,400, , , ,000 Interest Received J 2,000,000-2,000, , ,000 Government grant K 2,556,000-2,556,000 4,751,000 - Total income excluding levies L G + H + I + J + K 15,975,928-15,975,928 14,520,202 9,074,305 Income from levies M F - L 121,959,637 6,610, ,348, ,567, ,138,321 Total membership N 3,879,173 3,879,173 3,879,173 3,905,939 3,852,956 Levy amount O M / N % 6.98% 6.95% 6.57%

6 Table 2: CMS supplementary budget 2015/16 Detailed Supplementary Budget 2015/16 Supplementary Budget 2015/2016 Goods and services 1,404,061 Notes Method of budgeting Cleaning and Gardening 100,000 1 Cost of additional cleaning staff for the new office space. Rent 974,398 2 Rent for additional office space and parking. Rent - operating cost 209,663 3 Operating cost for additional office space. Staff Training 120,000 4 Staff training for new employees. Compensation of employees 3,172,860 Salaries 3,172, new positions Capital expenditure 2,033,970 Computer Equipment Cost 154,000 6 IT infrastructure in the offices and computers for 6 new staff members Computer Software Cost 36,000 7 Software for 6 new staff members. Furniture and Fittings Cost 400,000 8 Furniture for the new offices Leasehold improvement Cost 1,443,970 9 Tenant installation of the new office space Grand Total 6,610,891

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