Press release by the Board of Healthcare Funders of Southern Africa on the industry position regarding a regulatory framework for broker remuneration

The Board of Healthcare Funders will be making a submission to the Council for Medical Schemes early next year on the views of the medical schemes industry on proposals by the Council to revise the regulatory framework on health broker remuneration.
The majority of medical schemes agreed with the Council proposals that there be clear differentiation between independent advisors and marketing agents. Marketing agents should be employees of the scheme or the administrator and should only be allowed to market a particular scheme and should declare their interest to consumers.
Both independent brokers and marketing agents should be accredited by the CMS as one or the other but not both.
Medical schemes were divided on the question of whether or not the Council should continue to set a ceiling on remuneration of independent advisors. Some were in favour of the ceiling while others felt that it should be left to market forces. Medical schemes agreed with the Council proposal that there be no regulatory limit on the remuneration for marketing agents.
The majority of the industry felt strongly that independent advisors should not be remunerated by medical schemes or administrators but rather by members of the public or employers who choose to utilise their services.

For further information, please contact Heidi Kruger, Head of Corporate Communications at BHF on 011 5370237 or 0829051161.