Effect of the VAT increase on your medical costs

We have all felt the huge impact of the VAT increase on our pockets. While slowly coming to terms with the raised expense, it is nice to know where you have to pay more and where you can maybe save a bit.

What the VAT increase means for your medical aid contribution

There has been no change to your contributions for Remedi Medical Aid Scheme in 2018.

Your contributions for Remedi will remain unchanged until the end of the year. We will also absorb the increase in claims cost due to the VAT increase until the end of December 2018.

The new VAT rate will be one of the factors we consider when we work out the contributions for 2019, at the end of this year.

Effect on medicine and services

The new VAT rate may influence the price of some medical services and products (like medicine).

Your benefits will stay the same. If your plan specifies that we pay services up to 100% of the Scheme Rate, we will still pay 100% of the Scheme Rate and the Scheme Rate will incorporate the increased VAT if applicable. If your plan pays 80% of the Scheme Rate, the 20% you have to pay from your own pocket, might be slightly higher due to the 1% VAT increase.

Tip: Find possible generics for branded medicine. Ask your doctor if these medicines are viable alternatives for the medicine you use. This might save you a lot of money and help your benefits to last longer.