Worry about plan to abolish medical aid tax credit

JOHANNESBURG - The Health department has revealed in parliament that it’s talking to Treasury about gradually withdrawing the Medical Scheme Fees Tax Credit.

Currently the medical scheme tax credit is R364 per month for the main scheme member and first dependent, with an additional R246 per month for each subsequent dependent.

For a family of four, that’s around R15,000 worth of tax relief per year.

Since it’s a flat rate, it makes medical aid even more affordable for middle or low-income earners, because their relief is relatively higher.

The Board of Healthcare Funders says removing it will make medical aid membership unaffordable for up to 690,000 South Africans.

It says 67% of medical scheme members come from previously disadvantaged communities.