A Medical Savings Account (MSA) is an amount you are provided by your medical aid at the beginning of the year. It’s used to pay day-to-day medical costs such as doctors’ visits, dentist visits, etc.
The balance in your MSA that you haven’t used by the end of a particular year is carried over to the next.
If you were to deplete the funds in your MSA, you’ll move into what is called a ‘self-payment gap’. This gap varies, based on the scheme and option you have chosen. However, your medical aid will still pay for other benefits not covered by your MSA such as hospitalisation and chronic medication.
Every medical scheme has predetermined amounts that it will pay for certain procedures, which will be indicated in your statement.
By preserving the funds in your MSA to finance future medical costs, you can ensure that you won’t have to dip into personal savings to pay for unforeseen healthcare costs.
Keep in mind that you and your dependants do not get a separate MSA, you share the same one, although it will be larger than that of a single member.
Savings accounts were created to give members control over their day-to-day healthcare spending such as gp visits, specialists and obtaining over-the-counter medication. The system was designed to make members more accountable for their healthcare expenditure; curbing overuse.
While more appealing to healthy members, other members often feel its unfair when they’re forced to dip into their own pocket to fund their medical expenses when their savings account benefits have depleted.
According to the Medical Schemes Act, up to 25% of the members’ premiums can be set aside and put into savings accounts.
If a member accumulates a credit balance in their MSA, they cannot withdraw the cash. Only upon termination of membership of a medical scheme will this be possible; and on the stipulation that the member does not join another medical scheme with an MSA option.
By understanding what your MSA is used for and what it covers, you can use it efficiently and get more for your money!
That’s where The Medical Society comes in.
Getting the most out of your Medical Savings Account is as easy as signing up with The Medical Society. As a member, you get primary medical care with no waiting periods. As a key benefit, you are allowed an increased number of authorised visits, giving you more out of your MSA.