Joburg’s One-Broker Medical Aid Plan Sparks Legal Fight from Independent Advisors

The controversial plan by the City of Johannesburg to designate a single medical aid broker for all municipal employees, council members, and pensioners has sparked legal action. Independent brokers claim that this move could undermine their businesses and restrict workers’ rights.

The South Gauteng High Court received an urgent application on Monday from the Independent Financial Advisors Forum (Ifaf), which advocates for certified healthcare brokers. Citing constitutional and labor rights violations, the nonprofit is attempting to prevent the city from proceeding with its current broker tender process.

In order to hire one broker for a three-year contract, the city held a tender in late May. Managing medical assistance programs, maintaining compliance, providing assistance, and reducing expenses would be the responsibilities of this broker. However, Ifaf asserts that thousands of workers would be forced to leave their present brokers, some of whom have been with them for more than ten years, due to this centralized approach.

“They’re Shutting Us Out.”

Speaking under anonymity, one independent broker voiced grave concerns:

Since 2008, we have collaborated with our clients. We are currently being refused entry to the depots where our clients are located. It’s terrible—we’re being shut out in addition to losing business.

This so-called streamlining, according to another broker, is more akin to forced exclusion.

“We assist blue-collar workers in understanding their options for medical assistance. I lose everything if I am no longer able to do that.

The brokers claim that the City of Johannesburg is disregarding their right to select their own brokers, which is granted by the Council for Medical Schemes.

Is This Not the First Monopoly Attempt?

A similar move was attempted in Ekurhuleni but was halted following a legal battle, according to some brokers.

“We prefer competition to monopolies. It is unfair to give one broker 30,000 clients while ignoring the others, remarked a different broker.

According to Ifaf’s court documents, the city is prohibited from awarding or handling the tender as well as from meddling in already-existing broker-client relationships.

At the time of publication, no answers had been received to the questions posed to city officials, including Mayor Dada Morero’s office and spokesperson Nthatisi Modingoane.

The court hearing is anticipated to take place today.

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Sourced:Sowetan Live

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