Private medical schemes still have their place

By Staff Writer
Margaret Hulme, Old Mutual Actuaries healthcare consulting manager, believes private medical aid schemes have a positive role to play in South Africa in the short to medium term.

In a statement released last week Hulme said: "While Pravin Gordhan, Finance Minister, alluded to the government's intention to introduce a National Health Insurance (NHI) system in his recent budget address, private medical schemes will draw comfort from his remarks highlighting the need for the private sector to be retained alongside the public system." 

  • The tax deductible portion of monthly contributions to medical schemes - for those under 65 - has been increased by 7.2% for each of the first two beneficiaries. That is, from R625 to R670.
  • It has also increased by 7.9% for each additional beneficiary; so from R380 to R410.
  • For those who are 65 and older, medical expenses, including contributions, are still fully tax deductible. 

It will take some time before the South African government implements a national health insurance scheme and while government hospitals continue to struggle with various issues, the private ones are cashing in.

Visiting a private hospital, doctor, dentist or any type of specialist can become a pricey affair. If you do not currently have health insurance, shopping around for a good deal is the best place to start. Be informed before you choose a medical aid. Also make sure that you are getting the best out of your current medical aid provider by comparing quotes once in a while. Every individual has different needs and there is no point in paying for something you'll never use.

Recent Articles

Featured Debt consolidation – Explained

Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.  

Read more

3 Vehicle financing options compared – which is cheaper?

Buying a car is a considered a milestone, both in life and financially. Unless you’re able to fork out the cash, many opt for financing. But often the excitement to drive it off the showroom floor overshadows the need to check if you’re choosing the most-suited option. To help you make the best-informed decision we compare available vehicle financing structures in South Africa.

Read more

Splitwise: Split the bill not the friendship

Collecting your friends’ debt to you can be draining. You don’t want to ruin your friendship with them, and it can also be extremely awkward. I don’t know how many times I have written, deleted, and rephrased texts, reminding people to pay what is due to me.

Read more

Stokvel-friendly accounts – which one is fair?

The stokvel economy is approximately worth R49 billion in South Africa. This is according to the National Stokvel Association of South Africa (Nasasa). Altogether 24% of these stokvels are in Gauteng, while only 6% are in the Western Cape.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Save with 10X investments

Price: Free
When: Until 30 June
Where: Online

Sanlam Cumulus Investment Plan Limited Offer

Price: From R2,500
When: Limited Period
Where: Nationwide

Roman's Pizza Special-Single Large Pizza

Price: R69.90
When: Until 31 July
Where: Nationwide