medical aid brokers

Commission for medical aid brokers

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.

To read more on this controversial topic, click here:

https://www.genesismedical.co.za/medical-aid-brokers-commission-model-wrong/