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Medical Schemes Act, 1998 (Act No. 131 of 1998)

Regulations

Regulations in terms of the Medical Schemes Act

Chapter 3 : Contributions and benefits

10. Personal medical savings accounts

 

1) A medical scheme, on behalf of a member, must not allocate to a members personal medical savings account an amount that exceeds 25% of the total gross contribution made in respect of the member during the financial year concerned.

 

2) The limit on contributions into personal medical savings accounts apply to each individual member of a medical scheme.

 

3) Funds deposited in a member’s personal medical savings account shall be available for the exclusive benefit of the member and his or her dependants but may not be used to offset contributions, provided that the medical scheme may use funds in a member’s personal medical savings account to offset debt owed by the member to the medical scheme following that member’s termination of membership of the medical scheme.

 

4) Credit balances in a member’s personal medical savings account shall be transferred to another medical scheme or benefit option with a personal medical savings account, as the case may be, when such member changes medical schemes or benefit options.

 

5) Credit balances in a member’s personal medical savings account must be taken as a cash benefit, subject to applicable taxation laws, when the member terminates his or her membership of a medical scheme or benefit option and then –
a) enrols in another benefit option or medical scheme without a personal medical savings account; or
b) does not enrol in another medical scheme.

 

6) The funds in a member’s medical savings account shall not be used to pay for the costs of a prescribed minimum benefit.

 

7) Every medical scheme must provide the following to the Registrar with regard to members’ personal medical savings accounts—
a) details of amounts paid into members’ personal medical savings accounts;
b) details on both debit and credit balances in members’ personal medical savings accounts;
c) details on amounts paid to members or their estates on termination through resignation or death;
d) details on benefits, by category, paid out of members’ personal medical savings accounts; and
e) any other reports that the Council may specify from time to time.

 

8) Apart from funds paid into a medical savings account, no portion of a member’s contribution may be set aside for the purpose of paying the claims of a particular member and her or his dependants exclusively.