Healthcare Intermediaries Face Uncertainty Over Proposed Remuneration Structure

The Joint Brokers Forum has rejected proposals by the Council for Medical Schemes (CMS) to overhaul the fee structures for healthcare intermediaries, citing concerns that this could create an unfair environment and lead to a lack of affordable advice for the majority of covered and uncovered members. The CMS had proposed introducing two categories of healthcare brokers: scheme agents and independent advisers, with scheme agents being paid uncapped by the scheme and independent advisers being paid an agreed fee by the member or employer. The brokers forum, led by Friedman Twala, is seeking to explain its position to the council, while the Board of Healthcare Funders (BHF) has expressed support for the proposed changes, with Heidi Kruger stating that the majority of the industry believed independent advisers should not be remunerated by medical schemes or administrators.

Key Takeaways:

• The Joint Brokers Forum has rejected proposals by the CMS to overhaul fee structures for healthcare intermediaries, citing concerns about unfair treatment and a lack of affordable advice.
• The CMS had proposed introducing two categories of healthcare brokers: scheme agents and independent advisers, with scheme agents being paid uncapped by the scheme and independent advisers being paid an agreed fee by the member or employer.
• Friedman Twala, chairman of the brokers forum, expressed concerns that overhauling fee structures could strike a fatal blow to independent affordable advice for the majority of covered and uncovered members.
• The Board of Healthcare Funders has expressed support for the proposed changes, with Heidi Kruger stating that the majority of the industry believed independent advisers should not be remunerated by medical schemes or administrators.
• The Council for Medical Schemes has invited stakeholders to submit comments on the proposed changes, with a deadline of February 6.
• Patrick Masobe, the registrar of the CMS, has resigned from the council to pursue "new interests", but it is unclear what this will mean for the proposed changes.

Statistics:

• None explicitly mentioned in the text.

Sources:

• "Byline: Mzwandile Jacks THE Joint Brokers Forum has rejected proposals by the Council for Medical Schemes (CMS)"
• "September the council proposed changes to the remuneration structure of healthcare intermediaries, giving stakeholders until February 6 to submit comments."
• "Aleksandra Serwa, communications manager at the CMS, stated: 'He [Masobe] felt he had achieved what he set out to achieve'."

Please note that there are no statistics or dates mentioned in the original text apart from the statement that the council proposed changes to the remuneration structure in September, with stakeholders being invited to submit comments by February 6.