Ever wondered who pays the monthly commission for medical aid brokers?
The Medical Schemes Act, 1998 (Act No 131 of 1998) prescribes that commission payable, by a medical aid scheme to a medical aid broker (healthcare broker), must be based on monthly contributions payable by the member.
With effect from 1 March 2015, the rate of commission has been adjusted to 3% of monthly contributions up to a maximum of R75.00 plus value added tax (VAT), per month.
The effect of this injudicious legislation may, in certain instances, create a perverse incentive for brokers to “sell” the most expensive benefit options to their clients so as to earn the maximum commission.
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