You don't have to belong to a medical scheme to use a health debit card. If you are a medical scheme member, you can put your own funds in a debit card. But, unless your scheme issues you with a card to use for your medical savings account, you are unlikely to get your scheme savings account contributions paid into the account.
You can make your own provision for your medical expenses through these cards or through any account you set up for the purpose. While there is a tax rebate on contributions to a medical scheme, (two-thirds of medical scheme contributions are tax-deductible in an employer's hands), you should also consider that it costs schemes to administer savings accounts and this cost is passed on to you. You may see this cost directly in card fees and transaction charges on debit cards, or the cost may be hidden in your scheme's administration costs that come out of all members' contributions.
At least two schemes Personal Finance spoke to said that the costs involved were so high that they negated the tax advantage of contributing to a savings account through a medical scheme.
They recommend that if you do not have a cash-flow problem, you should take out a hospital plan for your major medical expenses and make your own provision for your day-to-day medical expenses.
MediCard
This card, issued by Standard Bank, can be used as a debit or a credit card and is accepted as payment for medical goods or services.
Annual card fee:
R65.
Additional card:
R49.
Withdrawals:
20c government duty.
Manual deposit or withdrawal:
R4.28 per transaction.
Interest on positive balance:
Up to R9 999: 3%.
R10 000 and above:
4.25% to 8.25% depending on the balance.
You can apply for your debit card to become a credit card. The bank will assess your creditworthiness before granting you credit.
Interest on debit balance:
25%.
Statements:
Sent monthly.
Account queries:
Call Standard Bank's card division.
MediCash
This is a debit card only - there is no credit facility. It is a Visa card which is accepted as cash payment for medical goods or services worldwide. The card is issued by Mercantile, but deposits can be made into the card at Absa banks.
Annual card fee:
None, but a monthly fee of R11, which includes lost card protection, is levied.
Additional card:
R8 a month.
Transaction fee (including government duty):
R1.50.
Manual transactions:
R4.28.
Interest on positive balance:
2%.
Statements:
Issued on request.
Resolution Health
Resolution Health's new Visa debit card is issued by Mercantile. The card is available to anyone and Resolution Health members will be able to use the card for their savings accounts.
Annual card fee:
None.
Additional cards:
Free up to 10 cards.
Replacement cards:
R50 per card.
Transaction fee:
R 4.50.
Fee for deposits:
R 5.25, can be made at any Absa branch.
Interest on positive balance:
6%
Statements:
No cost. Sent every two months and available online.
Igolide's Getmed Card
This debit card can be used to pay for day-to-day healthcare services, provided by 2 500 general practitioners (GPs) within the GPNet network, dentists within the DMS Dental Network, Pathcare pathologists, Eyenet optometrists, and S Buys pharmacies. Service providers must have internet access.
The card can be linked to a bank account, and you can deposit funds by debit order, cash or cheque.
You can also buy hospital insurance and emergency cover from any insurer and pay with the card.
Initial once-off fee:
R30.
Monthly fees:
R2 for administration and R5 for lost card protection.
Deposit fee:
R3.75.
Statements:
The account is a virtual one. Statements must be requested and cost R5.
Interest on positive balance:
Paid on credit balances, but is usually low and depends on the bank.
CRS Medical Savings Club
This is neither a debit nor a credit card, but you do get a membership card when you join this club, launched by Community Resources Systems (CRS).
Your membership fee entitles you to certain medical services at reduced prices. This includes medicine from a list of approved and discounted medicines at any of 1 400 United South African Pharmacies. The club's list caters for over 80 percent of conditions which can be treated with a combination of medicines for no more than R40.
Members also get access to nurse-based consultations at certain GPs for a cash fee of R60 (you see a nurse who can refer you to a GP). The current medical scheme tariff for GP consultations is R115 - R120. Your family can make as many visits as needed. Each pharmacy is linked to a GP.
In addition, members are entitled to discounted packages including eye tests, prescription lenses and frames at 800 independent and franchised optometric practices.
Annual fee:
R180 a year for a family (regardless of the size).