Medical Savings Accounts

A medical savings account is a portion of your medical scheme contribution set aside for approved day-to-day healthcare expenses, depending on the option you have chosen. It is commonly used for things like GP visits, medicine, and other everyday medical costs, rather than major hospital events.

A lot of people hear “savings account” and imagine something like a normal bank account with endless flexibility. It is not that. It is a medical scheme benefit structure. The money is there to help pay for specific day-to-day healthcare costs under the rules of your option. Once it is used up, you may need to pay certain day-to-day expenses yourself unless your option offers additional benefits beyond savings.

This is why clients should not only ask, “Does the option have savings?” They should also ask, “How much savings?”, “What can I use it for?”, and “What happens when it runs out?” Those are the questions that tell you whether the option truly suits your needs. Savings can be very useful, but they are not a magic handbag that keeps producing new GP visits forever.

Key things to know:

• A medical savings account helps pay for day-to-day healthcare costs
• It forms part of your medical scheme option, not a separate retail bank product
• It is usually used for things like GP consultations and medicine
• Once the savings are used up, you may need to pay some costs yourself
• Not every option includes savings, so it is important to compare carefully

A Universal Cover broker can explain how medical savings fit into your option.