Medical Scheme Tax Credits and Affordability

Medical Scheme Tax Credits and Affordability

Econex assesses the impact of the tax credit on the affordability of medical schemes for existing members. In particular, we consider the proportion of medical scheme beneficiaries for whom the removal of medical scheme tax credits would make medical scheme membership unaffordable. Importantly, we consider the impact of removing the tax credit ceteris paribus; i.e. we consider only the impact of removing tax credits. We do not consider how medical scheme affordability will change with adjustments to risk pools such as mandatory membership, risk equalisation or single benefit options. The analysis therefore shows the theoretical impact of removing the tax credit on the affordability of medical schemes.

Download the paper by clicking on the link: ECONEX_researchnote_46[1]

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