Today's Labour News

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healthcarePersonal Finance reports that the increase in value-added tax VAT will not affect medical scheme contributions or benefits for the year, but it will affect the prices of medical products and services.  

Members will thus have less buying power on their medical savings account when it comes to day-to-day expenses.  According to Gerhard van Emmenis of Bonitas Medical Fund, many members were confused as to whether VAT was payable on medical scheme contributions, but he gave the assurance that it was not.  “The VAT increase will have no effect on members directly and what they pay each month.  Medical scheme 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 affect the price of services, it will not affect benefits,”   Van Emmenis indicated.  In fact, changing contribution rates in the middle of the year can be done only with the permission of the Council for Medical Schemes following a request from the trustees of the medical scheme, something that happens rarely.  Dr Jonathan Broomberg of Discovery Health said Discovery Health Medical Scheme would not be passing on the increased costs to its members.

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