As you noticed your Medical Schemes send communication regarding the increase in Value Added Tax (VAT) and the impact it might have on your membership.
Medical Schemes absorbed the increase and did not pass the increase on to members in the form of interim contribution increases.
Even if the increased VAT does not have an impact on contributions, members may still feel the increase as it will have an impact on their medical savings account (MSA) and benefits as health services paid by the Medical Schemes become more expensive.
Health services at 100% of the scheme rate costing R1000 prior to the VAT increase will now still be covered at 100% but the cost increases to R1010. The service provider cost and scheme rates are now R10 more due to the VAT increase. If the Scheme covers the full amount from MSA, the member could be out of MSA earlier in this year.
Members are encouraged to use providers on networks and Designated Service Providers as far as possible to protect their MSA and reduce out of pocket expenses.
Here is what some of your contracted Medical Schemes had to say:
“This will however not affect Fedhealth member contributions, and the increase in
claims cost associated with the VAT increase will be absorbed by the scheme until end December 2018.”
“Medical aid contributions for 2018 are already set and Bonitas will not increase contributions mid-year to accommodate the change in VAT. So, while the increase in VAT may influence the price of services, it will not impact on contributions or benefits.”
“Discovery Health Medical Scheme contributions will remain unchanged, and the increase in claims cost associated with the VAT increase will be absorbed by the scheme until end December 2018.”
“The new increased rate has a knock-on effect on just about everything, medical schemes and members combined. Our members’ interests remain at the forefront of the Scheme and therefore Bestmed has taken the decision not to pass on the increased VAT burden to our members.”