New research into the loss of medical aid tax credits as part of implementation of the National Health Insurance scheme has raised fresh cost fears for those who choose private healthcare over taking their chances in the public sector. The research by economics consultancy Econex showed that potentially a quarter of those who belong to medical schemes and their dependants - close to twomillion people - could find membership unaffordable without the credits. The research found that removing the subsidy would hit the lowest-earning medical scheme members hardest, but even among the wealthiest 20% contributions could become unaffordable for some. Not cast in stone yet The research is based on estimates and averages, and the actual implications of withdrawing the subsidy will see each of us assessing the monthly loss. For a family of four all under the age of 65 and with no disabilities, the tax credits subsidise contributions by R12120 a year. Even if the loss of this subsidy doesn't p...
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