JOHANNESBURG - The Board of Healthcare Funders has written to National Treasury seeking clarity on whether medical scheme tax credits will be phased out to fund the National Health Insurance.
The board's Charlton Murove says these are worrying times with the move potentially resulting in major implications for private healthcare members and funding models.
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The Health Department revealed in Parliament this week that discussions are underway with Treasury to gradually withdraw the tax credits.
The Medical Scheme Fees Tax Credit reduces the tax that members of medical aids would otherwise pay.
But the Board of Healthcare Funders says that could make medical aid membership unaffordable for hundreds of thousands of ordinary South Africans.
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The same sentiments have been echoed by senior tax advisor at TTT Financial Group, Andre Bothma who says this removal could have a large impact.
He sheds light on the ability to save money with the current tax credit by using an example of a family of four.
He explains how that family receives R1,220 a month, providing them with tax relief of R14,600 a year.
Depending on how many dependents there are, it could increase or decrease, he adds.