Medical Schemes Amendment Act

1 Words in bold type in square brackets indicate omissions from existing enactments. Words underlined with a solid line indicate insertions existing enactments. in . ACT To amend the Medical Schemes Act, 1998, in relation to broadening the definition of broker and the circumstances under which such a person must be accredited in terms of this Act: and to provide for incidental matters. B E IT ENACTED by the Parliament of the Republic of South Africa, as follows:- Amendment of section 1 of Act 131 of 1998, as amended by section 1 of Act 55 of 2001

1. Section 1 of the Medical Schemes Act. 1998 (hereinafter referred to as the principal 5 Act ). is hereb), amended- ( a ) by the substitution for the definition of “broker” of the following definition: ’. ’broker’ means a person whose business. or part thereof. entails providing broker services. but does not include- ( i ) an employer or employer representative who provides service or 10 ad\ice exclusively to the employees of that employer; iii) a trade union or trade union representative who provides service or ad\ice exclusively to members of that trade union: or iiii) a person who provides senice or advice exclusively for the purposes of performing his or her normal functions as a trustee, principal officer. 15 employee or administrator of a medical scheme, unless a person referred to in subparagraph (i). (ii) or (iii) elects to be accredited as a broker, or actively markets or canvasses for membership of a medical scheme:”; and t h l by the insertion. before the definition of “business of a medical scheme”, of 20 the following definition: “ ‘broker services‘ means- ( ( 1 ) the projrision of service or advice in respect of the introduction or admission of members to a medical scheme: or (01 the ongoing provision of service or advice in respect of access to, or 25 benefits or services offered by, a medical scheme;”. 4 No. 24284 GOVERNMENT GAZETTE,? JANUARY 2003 Act No. 62, 2Q02 MEDICAL SCHEMES AMENDMENT ACT. 5 0 2 Amendment of section 65 of Act 131 of 1998, as amended by section 26 of Act 55 of 2001

2. Section 65 of the principal Act is hereby amended- ( a ) by the substitution for subsection (1) of the following subsection: ''(I ) No person mav act or offer to act as a broker unless the Council has granted accreditation to such a person on payment of such fees as may be prescribed."; \. 5 ( h ) by the substitution for subsection (2) of the following subsection: '.(2) The Minister may prescribe the amount of the compensation which. the categon of brokers to whom. the conditions upon which. and 10 any other circumstances under which, a medical scheme may compen- sate any broker [in terms of subsection (1)].'*: ( c ) by the substitution for subsection (3) of the following subsection: " ( 3 ) No [person] broker shall be compensated for providing broker services [relating to the introduction or admission of a member to a 15 medical scheme in terms granted accreditation to such [a person on payment of such fees and on submission of such information as may be prescribed] broker in terms of subsection 1 ).**: and of subsection (l)] unless the Council has ((11 by the substitution for subsection (6) of the following subsection: 20 * ' ( 6 ) A broker may not be directly or indirectly compensated for providiny broker serl~ices by any person other than- l a ) a medical scheme: ( 0 ) a member or prospective member. or the employer of such member or prospective member. in respect of whom such broker services are 25 provided: or ( c ) a broker emploving such broker.". Amendment of section 67 of Act 131 of 1998, as amended by section 28 of Act No. 55 of 2001

3. Section 67 of the principal Act is hereby amended by the substitution in subsection 30 ( 1 ) for paragraph (17) of the following paragraph: "(u) [the code of conduct of a broker, and] the conditions under which [such person] a broker may provide advice and other services to. or on behalf of. a medical scheme. beneficiary or any other person:". commencement and Short title 35

4. This Act is called the Medical Schemes -4mendment Act, 2007, and comes into operation on a date determined by the President by proclamation in the Gazerre.