Discovery's MSA

[Agent_Smith]

Howdy,

A buddy recently told me that if you downgrade your medical plan on Discovery, you get your MSA savings paid back to you in full. Is this true?

Also, if you decide to cancel your plan with Discovery entirely, you also get paid back in full. Again, this true or a load of hooey?

Cheers

 

[Sinbad]

Howdy,

A buddy recently told me that if you downgrade your medical plan on Discovery, you get your MSA savings paid back to you in full. Is this true?

Also, if you decide to cancel your plan with Discovery entirely, you also get paid back in full. Again, this true or a load of hooey?

Cheers

You get paid back the difference between what you've paid into MSA and what they've paid out. If they've paid out more than you've paid in, you will have to pony up.

 

[vash87]

As far as I know your medical savings will remain with Discovery for 6 months, during which time you can still use it for the normal things. After 6 months you will get the balance paid to you.

 

[GhostSixFour]

Well, it's your money. You're paying for it, but I doubt that you can go in January, sign up and then cancel and expect the whole amount to be paid out...

 

[yebocan]

You do get your MSA back, minus your tax liability....yeah oom Sars gets his cut as well....

 

[Tinuva]

Howdy,

A buddy recently told me that if you downgrade your medical plan on Discovery, you get your MSA savings paid back to you in full. Is this true?

Also, if you decide to cancel your plan with Discovery entirely, you also get paid back in full. Again, this true or a load of hooey?

Cheers

There are only 2 times it gets paid back:
1. If you downgrade to a plan that does not have a MSA.
2. If you cancel your Discovery Medical aid.

As others have mentioned, there are a few more rules:
- tax man wants his cut
- the payout is delayed, its not the same month you cancel, probably 6 months
- You can't sign up and cancel/downgrade in the same month.

Also, if you do downgrade your plan, you are locked into it for 6-12 months, and can only upgrade back to a MSA plan after that.

Eitherway, you are losing out if you want it to pay out, unless you move to another medical aid that is better than Discovery.

That MSA funds is a very good thing to have. Currently I am young, and that MSA is building up each year, because I only go to the doctor maybe twice a year, and need some meds after that, but other than that, that is actually a MSA which currently holds almost R20k for me. I may not need it now, but in a few years time, who knows, I will have kids and what not ect, and then those funds will come in handy.

 

[herbertk]

The MSA is given upfront for the year but you pay a percentage every month to it. So if you cancel in June you have only contributed 50% of the MSA they gave you.

So if you spent less than 50% after something like 3 months you will get it back, this is so they can make sure there are not any claims coming through that was submitted but not received before you cancelled.

If you spent more then you could actually end up ending them money....

 

[herbertk]

There are only 2 times it gets paid back:
1. If you downgrade to a plan that does not have a MSA.
2. If you cancel your Discovery Medical aid.

As others have mentioned, there are a few more rules:
- tax man wants his cut
- the payout is delayed, its not the same month you cancel, probably 6 months
- You can't sign up and cancel/downgrade in the same month.

Also, if you do downgrade your plan, you are locked into it for 6-12 months, and can only upgrade back to a MSA plan after that.

Eitherway, you are losing out if you want it to pay out, unless you move to another medical aid that is better than Discovery.

That MSA funds is a very good thing to have. Currently I am young, and that MSA is building up each year, because I only go to the doctor maybe twice a year, and need some meds after that, but other than that, that is actually a MSA which currently holds almost R20k for me. I may not need it now, but in a few years time, who knows, I will have kids and what not ect, and then those funds will come in handy.

Yup its a good thing to build it up.... you can also opt not to contribute to the MSA if you think you have enough stashed away but it is a great way to save money for medical reasons without tax...

 

[vash87]

Yup its a good thing to build it up.... you can also opt not to contribute to the MSA if you think you have enough stashed away but it is a great way to save money for medical reasons without tax...

And also without interest..

 

[SauRoNZA]

It's your money, they can't keep it.

But Tinuva pointed out it's not always to your benefit and there are specific conditions involved.

How anyone actually manages to have anything over on Discovery after every year is beyond me though, with their take from MSA first approach.

 

[supersunbird]

Got the interest and everything on my Fedhealth MSA that paid out in May...