Commission Relationships in Health Care

 

The Healthcare Industry is Filled with Commission Relationships Where Money Is Paid, But It Is Not Always Obvious.

Insurance brokers can earn much more than is disclosed on group medical plans. They can make money off the PBM, PPO discount (shared savings), production bonus’s, stop loss commission and other sources through subrogation services, audits, etc.

Several years ago we were engaged to review the financials of a 2,500 employee school district in Texas. The plan was self-funded through a BUCA. The group thought they had on Agent of Record earning $127,000. We peeled the onion back and reported the district had two Agent of Record earning between the both of them $614,000.

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