Discovery responds to the NHI: medical aids aren’t going anywhere

ToxicBunny

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Except Discovery will lose the vast majority of its members if the tax rates etc are hiked to fund NHI... Medical Aid will become an ultimate luxury that not very many could afford.
 

joker08

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Except Discovery will lose the vast majority of its members if the tax rates etc are hiked to fund NHI... Medical Aid will become an ultimate luxury that not very many could afford.
yep thats how I see it too. 2500 for medical aid + another 2500 for NHI gone from my salary.
Also because of NHI there will be reduction in number of people signing up for medical aid, I see an increase in monthly premiums too.
 

Gaz{M}

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Who cares if it is expensive. In a free democracy, you are free to spend your AFTER TAX money of whatever the F you like. It is unconstitutional for the state to impose limitations on what free citizens and free capital business can do.
 

joker08

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I am sure this move will be welcomed by those who contribute nothing towards the countries tax revenue. More quality health care for them whereas we have very little disposable income in our hands.
 

joker08

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Who cares if it is expensive. In a free democracy, you are free to spend your AFTER TAX money of whatever the F you like. It is unconstitutional for the state to impose limitations on what free citizens and free capital business can do.
yes but the least we can expect is a tax benefit if we choose to NOT use the government resources.
 

konfab

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Weak willed corporates like Discovery will be the death to South Africa.

They are one of the few groups that can stand up to the bullying of government, but here they are kowtowing to the nationalisation of healthcare.
 

Nerfherder

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yep thats how I see it too. 2500 for medical aid + another 2500 for NHI gone from my salary.
Also because of NHI there will be reduction in number of people signing up for medical aid, I see an increase in monthly premiums too.
They have the actuaries working on it they will adjust their model.

Remember they have a small margin on what they provide. So I pay Discovery 6k a month to cover my family but the bulk of that is medical savings (3-4k) and the rest is an insurance policy.

They make money off admin fees and the interest they earn on unpaid claims.... also off vitality which also wont fall away. vitality is a standalone product that is sold world wide.

People will still have medical savings because there are bound to be extra costs even after NHI. As long as there is a tax benefit people will keep those savings accounts.

The insurance part (hospital plan) is what is going to fall away. This R500-R1000 per person you pay will now be tax and hopefully cover a LOT more than what you would get on Discovery. There is still a gap there for Discovery to cover the gaps between what the NHI provide and what people have to pay.


I think a lot of people on entry level plans might just drop their medical aid in flavor of NHI. Most will have some kind of cover though... at least for the implementation phase of the NHI.
 

SeRpEnT

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They have the actuaries working on it they will adjust their model.

Remember they have a small margin on what they provide. So I pay Discovery 6k a month to cover my family but the bulk of that is medical savings (3-4k) and the rest is an insurance policy.

They make money off admin fees and the interest they earn on unpaid claims.... also off vitality which also wont fall away. vitality is a standalone product that is sold world wide.

People will still have medical savings because there are bound to be extra costs even after NHI. As long as there is a tax benefit people will keep those savings accounts.

The insurance part (hospital plan) is what is going to fall away. This R500-R1000 per person you pay will now be tax and hopefully cover a LOT more than what you would get on Discovery. There is still a gap there for Discovery to cover the gaps between what the NHI provide and what people have to pay.


I think a lot of people on entry level plans might just drop their medical aid in flavor of NHI. Most will have some kind of cover though... at least for the implementation phase of the NHI.
:rolleyes:
 

R13...

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I wonder where government plan to find money to bring their facilities to a standard that's acceptable for NHI participation. Otherwise you'd end with too few NHI facilities which are forced to service everyone.
 

ToxicBunny

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Hospital plans around around R1500 per month now.... and yes that will fall away and be replaced with a much larger taxed value... and the tax benefit of having medical aid will disappear.

There is no way in our current climate, the NHI makes financial sense for the country or for the middle and upper class who will largely fund it.
 

SeRpEnT

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Where do I even start?!

People will still have medical savings because there are bound to be extra costs even after NHI.
No they will have to resort to REAL savings account to save up for when they are sick and have to pay cash for instant access to (good) doctors and specialists. Nobody will pay money towards Medical aid savings as it will be pointless....

As long as there is a tax benefit people will keep those savings accounts.
No, the tax rebates is the first thing that will be removed to help fund the NHI. They clearly list it in their funding model.

The insurance part (hospital plan) is what is going to fall away. This R500-R1000 per person you pay will now be tax and hopefully cover a LOT more than what you would get on Discovery.
LOL. Yes and the sky is made from marshmallows. The word "hopefully" duly noted. :p


There is still a gap there for Discovery to cover the gaps between what the NHI provide and what people have to pay.
The idea of NHI is to cover much more than current government health care. And NHI and the planned revised bill on medical aids will restrict medical aid coverage to only what is not covered on NHI...and this will most likely be limited to cosmetical health costs..
 

Nerfherder

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Hospital plans around around R1500 per month now.... and yes that will fall away and be replaced with a much larger taxed value... and the tax benefit of having medical aid will disappear.

There is no way in our current climate, the NHI makes financial sense for the country or for the middle and upper class who will largely fund it.
You think it will be more ?

Well... ok I think it might be more if they use a sliding scale based on your earnings.
I don't think a lot of people would be able to afford R1500 pp NHI tax
 

ToxicBunny

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You think it will be more ?

Well... ok I think it might be more if they use a sliding scale based on your earnings.
I don't think a lot of people would be able to afford R1500 pp NHI tax
For higher earners it will be more... it will be an extra 2 or 3% on your income tax... plus a hike in VAT....

Work it out, and you will find its quite significantly more than what a standard hospital plan would cost. It won't be an individual NHI tax...
 

maumau

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They have the actuaries working on it they will adjust their model.

Remember they have a small margin on what they provide. So I pay Discovery 6k a month to cover my family but the bulk of that is medical savings (3-4k) and the rest is an insurance policy.

They make money off admin fees and the interest they earn on unpaid claims.... also off vitality which also wont fall away. vitality is a standalone product that is sold world wide.

People will still have medical savings because there are bound to be extra costs even after NHI. As long as there is a tax benefit people will keep those savings accounts.

The insurance part (hospital plan) is what is going to fall away. This R500-R1000 per person you pay will now be tax and hopefully cover a LOT more than what you would get on Discovery. There is still a gap there for Discovery to cover the gaps between what the NHI provide and what people have to pay.


I think a lot of people on entry level plans might just drop their medical aid in flavor of NHI. Most will have some kind of cover though... at least for the implementation phase of the NHI.
In a government hospital?
 

rwenzori

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'Discovery Health is by far the largest open medical aid scheme in the country, '

How big is the Govt. medical aid?
 
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