Late joiner penalties

Under certain circumstances Remedi may impose a late joiner penalty on the membership of a new member or dependant.

When late joiner penalties may be applied

In terms of the Medical Schemes Act, 131 of 1998, a late joiner penalty may be applied in respect of any person who joins Remedi as a member or dependant, is 35 years of age or older and who does not have sufficient years of creditable medical scheme cover.

How the late joiner penalty is calculated 

To determine the late joiner penalty, any creditable coverage will be deducted from the late joiner’s actual age. The penalty rate applicable to the relevant “adjusted age” will be applied. The late joiner penalty will apply for the duration of membership of Remedi. The calculation of this penalty is done in accordance with the stipulations of the Medical Schemes Act (1998).

Creditable coverage refers to any period of verifiable medical scheme cover enjoyed by a late joiner, excluding cover enjoyed as a child dependant.

How the penalty will be applied

The penalty will only be applied to the monthly insured contribution (excluding any contribution to the Personal Medical Savings Account) and only to the portion of the contribution applicable to the late joiner, whether it is the principal member or one of his/her dependants.

Contribution penalties may be applied for people over the age of 35, without creditable coverage after the age of 30 years, as follows:

  • 1-4 years

@ 1.05 multiplied by the relevant contribution

  • 5-14 years

@ 1.25 multiplied by the relevant contribution

  • 15-24 years

@ 1.5 multiplied by the relevant contribution

  • 25+ years

@ 1.75 multiplied by the relevant contribution