Tuesday, 19 March, 2024
HomeMedico-LegalKeyHealth offered brokers incentives to sign younger members

KeyHealth offered brokers incentives to sign younger members

KeyHealth allegedly contravened the Medical Schemes Act through a financial incentive scheme for brokers to sign up younger members, it emerged in the court battle to place the scheme under curatorship. Die Burger reports that Judge Jody Kollapen, of the Gauteng High Court (Pretoria), has issued his reasons for placing KeyHealth under curatorship at the end of last year.

The Registrar of Medical Schemes found that KeyHealth paid brokers R400 for signing up members younger than 50 while paying nothing when a new member older than 60 was referred.

The scheme collects R2bn in premiums a year and has 67,000 members.

Kollapen said it appears as if the board of trustees missed the point that they could not deviate from the scheme rules. The need for a curator is not directly related to mismanagement of funds, but rather corporate governance issues, notes the report.

The principal officer of Keyhealth was apparently appointed on a permanent basis while the scheme rules prescribe a fixed-term contract.

 

Full report in Die Burger (Restricted access)

MedicalBrief — our free weekly e-newsletter

We'd appreciate as much information as possible, however only an email address is required.