Government’s plan to ditch medical aid tax credits is expected to force nearly 2-million people into the already overcrowded state health system.If the tax credit is removed‚ 20% of medical aid users will no longer be able to afford it‚ a leading economics consultancy warned in a study published on Friday.It would mean 1.9-million of the 8-million medical aid members‚ including children‚ will drop out of the private healthcare system. This is according to an analysis by Econex‚ a Stellenbosch-based economics consultancy.When the new National Health Insurance policy document was released in July by Health Minister Aaron Motsoaledi‚ he said he wanted to remove the tax credit to users‚ which amounts to R20bn.People on medical aids get a tax reduction of R3‚636 a year — or R303 a month. A person with a dependent on the medical aid would pay R606 less tax a month. At the time Motsoaledi said the tax credit was unfair.Author of the Econex analysis‚ economist Dr Paula Armstrong‚ explained ...

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