MEDICAL AID PLUS COVER - FOR LOW INCOME EARNERS
The medical aid subsidy benefit was introduced in March 2007 essentially making membership of the company elected medical aid scheme compulsory for all permanent employees with certain exclusions namely:
· Employees who were covered under a spouse or partner’s medical aid scheme
· Employees who earned R5 000 and less would not be compelled to take up medical aid membership
The company is introducing a separate medical aid benefit for those employees who could not afford medical aid due to their low earnings. In terms of this benefit, the company will subsidise employees up to 90% of their contributions based on their earnings. This benefit is only available on Discovery’s KeyCare plan and is directed at employees who earn R10 000 per month and below.
The benefit covers the employee only. Should the employee wish to include his/her dependents, then he/she will have to join the standard scheme in which the company subsidy is 50% of contributions.
Summary of Discovery’s Keycare Plan
· Unlimited day-to-day care at CareCross hospitals
· Unlimited hospital care at network hospitals
· Chronic, dentistry, optometry, x-ray cover
· Comprehensive HIV/AIDS programme and cover for ARVs
· Confidential telephone and Off-site counselling around the clock
·
The subsidy model (based on 2010 tariffs)
CATEGORY/EARNINGS / EMPLOYEE CONTRIBUTION / COMPANY CONTRIBUTIONR6 000 and below
KeyCare subscription =R494 / 10% = R49.40 / 90% = R444.60
R6 001 to R8 000
KeyCare subscription = R629 / 20% = R125.80 / 80% = R503.20
R8 001 to R10 000
KeyCare subscription = R1 030 / 30% = R309.00 / 70% = R721.00
Essentially, the subsidy model is divided into three income categories:
Group A: Those earning R6 000 and below. The employee will pay 10% and the company pays 90%
Group B: Those earning R6 001 up to R8 00. The employee will pay 20% and the company pays 80%
Group C: Those earning R8 001 up to R10 000. The employee will pay 30% and the company pays 70%
Salary increasing over threshold
When an employee’s salary increases beyond the R10 000 mark, the employee will be excluded from this option and will have to join the standard medical aid scheme. In this regard, the company will award the employee an extra 2% increase over and above his/her normal annual increase awarded. This extra amount is aimed at assisting the employee with the transition from the heavily subsidised medical aid to the standard scheme which is subsided at 50%.
The extra percentage awarded at transition is a once off for the year in which the employee switches from the MA Plus cover to the standard medical aid scheme.
April 2011
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