Making the Most of your Medical Savings Account

A Medical Savings Account (MSA) is an important component of certain medical aid plans. It is essentially a portion of your money that you pay to Bankmed, as part of your monthly contributions. At the maximum, your MSA can be made up of up to 25% of your monthly contributions. Our Plus, Comprehensive or Core Saver Plans all have an MSA. These funds are set aside to pay for day-to-day medical expenses.

The Benefits of a Plan with a Medical Savings Account

Your MSA is used largely to pay for general day-to-day claims such as general practitioner visits. Whilst every Plan provides cover for certain medical treatments and medications, there are some procedures and medications that your Plan may not cover, or you may only qualify for partial cover. Your MSA can then be used to cover any shortfall. You may also use it to pay for your medical treatment if your benefit limits have been reached. For example, if your Plan covers a Healthcare Professional's consultation at a set rate and your Healthcare Professional charges more than that rate, your MSA may be used to cover the shortfall when you submit your claim. Contributions to the MSA are also tax-deductible which can provide welcome financial relief.

What can your MSA be used for?

Here are some examples:

1. Healthcare Professional's Visits: You can use your MSA funds to pay for consultations with general practitioners or specialists.
2. Prescription Medication: If you need to purchase prescribed medications, your MSA can cover these costs.
3. Dental Care: Some MSA Plans include dental expenses, such as routine check-ups, cleanings, and fillings.
4. Optical Expenses: MSA funds can be used for eye tests, prescription glasses, or contact lenses.
5. Pathology and Radiology Tests: MSA funds can be used for blood tests, X-rays, and other diagnostic tests.

These all depend on your Plan type.

Have your claims paid at the Scheme Rate or Cost Incurred

You have a choice as to how we refund your claims from your MSA. We can either pay them at the Scheme Rate or at the cost incurred. If we pay at the Scheme Rate, you will need to cover the shortfall for any claims that are above this rate. If you choose to have your claims paid at the cost incurred, then we will settle those claims from the available funds in your MSA. Unless you specify differently, we automatically pay at the Scheme Rate, so if you would prefer for us to pay your claims at the cost incurred, you will need to apply for special payment from the MSA. If you have a claim that is more than the Scheme Rate you can complete a "Special Payment from the Medical Savings Account" form and request that we fund the claim from your MSA.

Prescribed Minimum Benefits do not affect your MSA

If your treatment or care is a Prescribed Minimum Benefit (PMB) then MSA Regulations state that Bankmed needs to pay for this in full without any co-payment. This means that you shouldn't have to use your MSA at all for any PMB procedures or treatments. You can view a full list of the treatments and procedures that are classified as PMB's on the Bankmed website

Any unused funds in your MSA roll over monthly and yearly. They also accumulate interest, which means you are making money in a similar way to a bank savings account. You can choose how you wish to use the funds, and if you terminate your Bankmed membership, you are able or withdraw the accumulated amount, once all your outstanding claims have been settled. Should you have outstanding claims when you terminate your account, you will be required to pay the amount back to Bankmed yourself.

Remember that the specific coverage may vary depending on your medical Plan. Always check the details of your MSA to understand what expenses are eligible for reimbursement.