Medical Schemes Advising Tariff adjustments in light of 1% VAT Increase

Dear SAMA Private,

Practitioner Membership, As per the national budget tabled by the Minister of Finance on 21 February 2018, the Value Added Tax (VAT) rate for South African is increasing from 14% to 15%, effective 1 April 2018.

The SAMA Private Practice Department has been collecting information and confirmations from medical schemes and medical scheme administrators ahead of the 1 April 1% VAT increase implementation.

While most medical schemes have indicated that they will update their scheme rates and tariffs accordingly, some have advised that they will not be amending tariffs and rates for 2018. SAMA does not engage in tariff negotiations with medical schemes, but we do hope that this information will assist our members in the transition.

The detail available to SAMA as at 28 March is below:
1. Discovery Health

Discovery Health Administrators have advised their client schemes to effect the tariff change on 1 April 2018 (see Discovery communication, 2 March).

Discovery Client Schemes Include:

Discovery Health Medical Scheme, Anglo Medical Scheme, Anglovaal Group Medical Scheme, Bankmed, BMW Employees Medical Aid Society, Glencore Medical Scheme, LA-Health Medical Scheme, Lonmin Medical Scheme, Malcor Medical Scheme, Naspers Medical Fund, Quantum Medical Aid Society, Remedi Medical Aid Scheme, Retail Medical Scheme, TFG Medical Aid Scheme, Tsogo Sun Group Medical Scheme, University of Kwa-Zulu Natal Medical Scheme, University of Witwatersrand, Johannesburg Staff medical Aid Fund.

2. The Government Employee Medical Scheme (GEMS)

GEMS has advised that updated lists of GEMS tariffs are currently being prepared and will be published accordingly (See GEMS Confirmation 22 March).

3. Medscheme

Medscheme has also communicated that it and its client schemes have commenced with the process of implementing the schemes’ directive/mandate related to tariff adjustments.(See Medscheme Letter 23 March 2018)

Medscheme’s South African Client Schemes include:

AECI Medical Aid Society, Barloworld Medical Scheme, Bonitas, Fedhealth, Government Employees Medical Scheme (GEMS), Horizon Medical Scheme, Hosmed Medical Scheme, MBMed Medical Aid Fund, Medshield, Nedgroup Medical Aid Scheme, Old Mutual Staff Medical Aid Fund, Parmed Medical Aid Scheme, SABC Medical Scheme, SAMWUMED, Sasolmed, South African Police Service (POLMED).

4. MMI Health

MMI Health has indicated they will adjust their contracted rate payments from 1 April 2018.

In addition, the following MMI Health administered schemes have agreed to adjust their non-negotiated scheme rate in line with the VAT increase:

BP Medical Aid Society, Momentum Health, Fishmed, MEDiPOS (0,5% increase), Golden Arrow Employees’ Medical Benefit Fund, Transmed, Pick n Pay Medical Scheme, Wooltru Healthcare Fund, Selfmed: SelfNET and SelfNET Essential, Horizon Medical Scheme: Hospital Plus Network Plan, Old Mutual Staff Medical Aid Fund: Network Plan.

Engen Medical Benefit Fund, Imperialmed, Moto Health Care and PG Group Medical Scheme have indicated that they will not increase their Medical Scheme Rate to accommodate the VAT increase

Regards
The Private Practice Team