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Moneyweb reports that members and beneficiaries of the most popular plans offered by Discovery Health Medical Scheme (DHMS) will see sharp cuts to their medical savings accounts (MSAs) from 2024.
The group motivated this in its announcement about the increases for 2024 by highlighting that practically four in every 10 scheme members (39%) will experience an increase in contributions of less than 4% from January. The cuts will be made on the two most popular plans (excluding entry-level KeyCare), namely Classic Saver and Essential Saver, which have around half a million members between them. The Classic Saver plans will see contributions increase by 3%, while the Essential Saver ones will be 3.8% higher. To achieve the sub-4% increases for these plans, Discovery has cut the allocation to the MSA from the net contribution paid by five percentage points. For the Classic Saver plan (including the Delta variant), the allocation is reduced from 25% to 20%, Essential Saver (and Delta) from 15% to 10%, and Coastal Saver from 20% to 15%. This means that for main members on the Classic Saver, their MSA will drop from R12,180 this year to R10,020 next year. On Essential Saver, the MSA will reduce from R5,796 this year to R4 008 in 2024. Where the change becomes even more acute is in the allocation to the MSA for children.
- Read the full original of the report in the above regard The Citizen
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