HealthSaver account: Terms and conditions

Below is information about Focus on the HealthSaver Terms and Conditions

1. The individual who holds the account is recognized as a member of the Momentum Medical Scheme, which is referred to as “the scheme.” This membership is crucial as it establishes the account holder's eligibility and rights within the HealthSaver program.

2. Momentum has been designated as an agent on behalf of the account holder, taking on the responsibility for the administration of the HealthSaver. This includes managing all administrative tasks related to the HealthSaver, which encompasses communication and interaction with both account holders and their beneficiaries. Momentum’s role is vital in ensuring that the account holder's needs are met efficiently and effectively.

3. Momentum is tasked with collecting all contributions intended for investment in the HealthSaver. These contributions can be made through a debit order or via an instruction to the account holder's employer to deduct the specified amount directly from the account holder's salary. Subsequently, the employer will remit these funds to Momentum on behalf of the account holder. Momentum is obligated to deposit all collected funds, after deducting any amounts it is entitled to under the contract, into an account with a registered South African bank, in accordance with the Protection of Funds Act, 2001, ensuring that the funds are safeguarded.

4. Momentum retains the right, at its sole discretion, to refuse an application for the HealthSaver from any account holder. This decision is based on various factors that Momentum deems necessary for maintaining the integrity of the HealthSaver program.

5. An annual administration fee of R40 is applicable to all account holders. This fee is essential for the upkeep and management of the HealthSaver accounts.

6. In compliance with the Financial Intelligence Centre Act (FICA), Momentum is mandated to perform verification checks on all members who apply for the HealthSaver, as well as on existing account holders. This verification is crucial for maintaining regulatory standards and ensuring the legitimacy of the account holders.

7. Successful FICA verification is a prerequisite for activating the HealthSaver account. If a member is unable to provide the necessary FICA documentation, they will not be able to access the HealthSaver product. This stipulation underscores the importance of compliance with legal requirements.

8. According to FICA regulations, an accountable institution such as Momentum must conduct ongoing due diligence regarding business relationships. This includes monitoring transactions throughout the duration of the relationship to ensure compliance and to mitigate risks.

9. To complete the FICA verification process, Momentum requires specific information, which includes but is not limited to: the identity or passport number of the account holder. If a passport number is supplied, a copy of the passport along with the country of origin must also be provided. Additionally, if the contribution payer differs from the account holder, their identity or passport number is necessary, along with the same documentation requirements. For companies acting as contribution payers, the company name and registration number are required unless a company application form has already been submitted. In cases where contributions are made by a trust, specific documentation such as a trust deed for local trusts or an official letter from a competent trust registering authority for foreign trusts is required. For all other trusts, the names and identity or passport numbers of each trustee must be provided, along with copies of their passports if applicable.

10. Another requirement under FICA is that the account holder must disclose the source of funds used for contributions. This could include income from salaries, commissions, rental income, dividends, pension or provident fund payments, retirement annuities, or any other specified source.

11. Each account holder has the autonomy to decide the monthly contribution amount they wish to invest in the HealthSaver, with a minimum monthly investment of R100 required if contributions are made via debit order. Momentum reserves the right to adjust this minimum amount at its discretion. Account holders are also permitted to modify their monthly investment amounts and make additional contributions into their HealthSaver accounts, following the guidelines established by Momentum.

12. The funds that account holders invest in the HealthSaver are designated for covering authorized medical expenses incurred by the account holder and/or their dependents. For those who possess a HealthSaver Card, it allows for payments from the HealthSaver for certain non-medical expenses, such as purchases made at pharmacies and veterinary clinics, provided these transactions adhere to the terms and conditions associated with the HealthSaver Card. Additionally, account holders can deposit funds into their HealthSaver accounts via electronic funds transfer (EFT) from their personal bank accounts. There is no upper limit on the amount that can be transferred; however, all deposits of R50,000 or more will be subject to Anti Money Laundering (AML) audits to ensure compliance with financial regulations.

13. In instances where an employer contributes towards the HealthSaver, they may impose restrictions on how the funds can be utilized, particularly concerning non-medical transactions that are allowed through the HealthSaver Card. This ensures that the funds are used in accordance with the employer's policies.

14. For account holders with a HealthSaver Card, the HealthSaver account will be debited for the amount spent at any medical service provider, along with any associated card fees. For a comprehensive understanding of the terms and conditions governing the use of the HealthSaver Card, account holders are encouraged to refer to the full documentation provided by Momentum.

15. To access funds in their HealthSaver accounts for medical expenses, account holders and their dependents must follow the claims process established by the Momentum Medical Scheme. This process is designed to streamline the reimbursement of medical expenses and ensure proper documentation is maintained.

16. If an account holder has made a payment to a medical service provider using the HealthSaver Card and later wishes to have that payment considered for reimbursement from scheme benefits, they must submit proof of payment along with a valid claim through the scheme’s claims process.

17. Account holders designate their HealthSaver account as the primary account for all funds that are to be reimbursed by the scheme when a medical service provider has been paid from the HealthSaver account for a benefit approved by the scheme. This ensures clarity in the reimbursement process and proper allocation of funds.

18. The interest rate applicable to any credit balances is subject to changes that may occur due to fluctuations in the prime interest rate. This means that account holders should be aware that the interest they earn on their balances may vary over time.

19. The interest earned on positive balances in the HealthSaver account will be influenced by the account holder’s activity level and Healthy Heart Score. Different interest rates will be applied to positive balances, excluding Booster and credit, depending on these factors.

20. Positive interest is exclusively available to members who actively contribute to their HealthSaver account. Contributions can be made for the purpose of repaying credit or to increase the positive balance through regular monthly payments or additional contributions.

21. The maximum amount of monthly interest that can be earned will be capped at the level of the monthly contribution made by the contribution payer. This cap ensures that interest earnings are aligned with the contributions made to the account.

22. Should there be any retrospective changes to a member’s activity, fitness assessment level, or Healthy Heart Score, the interest calculation will not be adjusted retroactively. This means that changes will only affect future interest calculations.

23. The interest rate will be calculated on a monthly basis, utilizing data from the previous month regarding Healthy Heart Scores and Active Dayz or fitness assessment levels. This regular assessment helps ensure that interest rates reflect the most current information available.

24. Account holders will receive tax certificates (IT3(b)) for their HealthSaver account, when applicable. This documentation is important for tax reporting purposes and ensures compliance with tax regulations.

25. Momentum reserves the right to withdraw funds from an account holder’s HealthSaver account as needed to: a. pay registered healthcare providers on behalf of the account holder, b. pay approved merchants through the HealthSaver Card, or c. reimburse the account holder for authorized medical expenses that have been directly settled with registered healthcare providers. This provision allows Momentum to manage funds effectively and ensure timely payments for medical services.

26. If an account holder discontinues payments to the HealthSaver for any reason, the accumulated savings and interest remaining in the account after deductions will be used to cover any authorized medical expenses incurred by the account holder and/or their dependents over time. This ensures that the funds are utilized for their intended purpose, even if contributions cease.

27. Account holders have the option to cancel their HealthSaver at any time by providing Momentum with written notice one calendar month in advance. Following cancellation, any positive balances in the HealthSaver will be refunded to the account holder after a waiting period of four months, excluding any HealthReturns. This process allows for a smooth transition for account holders who wish to discontinue their participation.

28. HealthSaver Cards that are linked to the HealthSaver account will also be automatically cancelled upon the account holder's decision to cancel their account. This ensures that there are no lingering connections to the account post-cancellation.

29. An account holder’s HealthSaver will be automatically terminated if their membership in the scheme ends for any reason. Any cancelled HealthSaver accounts with unclaimed positive balances will incur a monthly administration fee starting from the sixth month after termination. This fee will be proportional to the costs associated with maintaining the dormant account.

30. In cases where Momentum has extended a loan to an account holder under a Loan Agreement, Momentum is entitled to access funds held in the HealthSaver to settle any outstanding amounts owed by the account holder in connection with that loan, including any associated fees and charges. Additionally, all future contributions collected for the account holder’s HealthSaver will be applied to settle any debts owed by the account holder. Momentum is not obligated to allocate any funds collected from the account holder to their HealthSaver until all liabilities to Momentum have been fully settled.

31. If an account holder's HealthSaver account is terminated for any reason, any funds held on the account holder's behalf will be used to pay off any outstanding liabilities to Momentum. Any remaining balance, if applicable, will be allocated to claims submitted for services rendered before the cancellation date, up to a period of four calendar months following the cancellation. Any leftover funds will then be returned to the account holder, excluding HealthReturns.

32. Funds advanced to an account holder under the loan must be used for authorized medical expenses or non-medical expenses if the account holder possesses a HealthSaver Card. These funds will be made available as needed, provided the account holder follows the appropriate claim process. This provision allows for flexibility in how the funds can be utilized, while still adhering to the established terms and conditions.

33. Momentum reserves the right to conduct reasonable credit checks at any time, whether before or after granting a loan. This includes making inquiries about the account holder’s credit history with credit reference agencies and other relevant parties to verify the information provided. Furthermore, Momentum may provide regular updates regarding the account holder's conduct related to the loan to credit reference agencies, which will then be made available to other credit providers. Additionally, any account holders who default on their repayment obligations may have their details listed with credit reference agencies.

34. All credit extended to an account holder under this agreement will be immediately suspended, and the entire outstanding balance owed by that account holder will become due and payable if: a. the account holder ceases to be a member of the scheme for any reason, b. the account holder fails to make any agreed payment to the HealthSaver within 30 days of the due date, or c. the account holder is subject to a provisional or final sequestration order regarding their estate. This provision is critical for protecting Momentum’s financial interests.

35. In accordance with the requirements set forth by the National Credit Regulator, account holders must provide Momentum with confirmation to proceed with the HealthSaver credit advance. Momentum will offer account holders applying for credit (whether new applications or changes to existing HealthSaver credit) the opportunity to accept the credit terms prior to granting the HealthSaver credit. Account holders will receive communications prompting them to confirm their acceptance of these terms. If Momentum does not receive this acceptance within the specified timeframe, the account holder will be unable to utilize the HealthSaver credit facility.

36. For new credit applications, Momentum will allow account holders access to the full 12 months of credit, regardless of when they apply. For example, if an account holder applies in July, they will have access to the entire 12-month credit facility. However, in January of the following year, Momentum will not grant the full 12 months of credit for that calendar year but will adjust the credit facility based on the number of months advanced in the previous year. For subsequent calendar years, the standard credit allocation will apply.

37. Interest on the loan will be charged at a rate of prime plus 6.0% per annum. This interest begins accruing from the date the credit advance is utilized until the full amount is repaid. Interest will accumulate daily at the specified rate and will be compounded monthly in arrears. It is important to note that this interest rate may be adjusted periodically to reflect changes in the prime rate.

38. Account holders have the opportunity to reduce the aforementioned credit interest rates based on their Active Dayz, Healthy Heart Score, and fitness assessment levels. This incentivizes account holders to maintain healthy lifestyles, as improved health metrics can lead to lower interest costs.

39. Account holders can request to pay off any negative balances (including interest) in addition to their regular contributions by notifying Momentum in writing of the desired monthly repayment amount. Any negative balances that remain unpaid by the end of the calendar year will automatically be deducted from the following year’s credit advance, ensuring that outstanding debts are addressed in a timely manner.

40. Momentum requires advance notice of any changes to repayment amounts. Such changes will take effect on the first day of the month following the processing of the request, allowing for proper planning and adjustment of account management.

41. A certificate issued by any manager or director of Momentum, whose appointment and designation do not require proof, will serve as prima facie evidence of the amount owed by an account holder to Momentum in connection with the loan. This simplifies the process of verifying debts and ensures accountability.

42. Should Momentum initiate legal proceedings against an account holder to recover any amounts owed under the loan agreement, the account holder will be responsible for all legal costs incurred by Momentum in relation to such proceedings. This includes attorney fees, collection fees, and tracing fees, which can accumulate significantly depending on the circumstances.

43. An account holder must notify Momentum immediately if they are placed under an administration order, become insolvent, or acquire any other form of legal disability. This requirement is crucial for maintaining transparency and ensuring that Momentum can manage the account appropriately.

44. The account holder’s net income will be a determining factor in whether credit will be granted, in accordance with the provisions of the National Credit Act. This ensures that credit is extended responsibly and within the account holder’s financial capacity.

45. The maximum amount of credit that can be granted to an account holder is capped at R36,000. This limit is in place to mitigate risks associated with lending and to ensure that account holders do not overextend themselves financially.

46. Any ad hoc contributions and rebates made to the HealthSaver will not impact the credit that has been advanced to the account holder. This separation ensures that contributions do not inadvertently affect the terms of the credit agreement.

47. All applications for credit are subject to verification, processing, and screening. Momentum reserves the right to decline any application based on these checks. Furthermore, applications will undergo continuous screening even after acceptance, particularly when changes are requested, which may result in the termination of an application or a reduction in the amount of credit advanced.

48. Upon cancellation or termination of a HealthSaver product, Momentum may offset any outstanding debts owed to the scheme or any other Momentum product from the funds available in the HealthSaver. This provision ensures that Momentum can recover debts efficiently.

49. In the event of cancellation or termination of the HealthSaver product, Momentum may refer unpaid accounts related to the HealthSaver for collection and listing on credit bureaus. This action is intended to protect Momentum’s financial interests and ensure accountability among account holders.

50. Starting January 1, 2024, Ukheshe will serve as the payment channel partner for the Momentum HealthSaver Card. This partnership aims to enhance the functionality and accessibility of the HealthSaver Card for users.

51. By applying for the Momentum HealthSaver Card, the account holder acknowledges that they have read and understood the Terms and Conditions associated with the use of the card. These terms can be accessed by clicking here or by visiting Ukheshe.com. By proceeding with the application, the account holder agrees to be bound by these Terms and Conditions. If they do not agree, their application for the card cannot be processed.

52. Card fees associated with the Momentum HealthSaver Card will be deducted from the account holder’s HealthSaver account. These fees are subject to change annually in January, and the most current fee structure can be found on the HealthSaver page at momentum.co.za.

53. Momentum will conduct identity and residential address verification for the account holder. If satisfactory proof of identity and address cannot be provided in accordance with FICA requirements, Momentum may decline to issue or activate the card. This verification process is essential for maintaining security and compliance with legal standards.

54. For a transaction to be authorized using the HealthSaver Card, sufficient funds must be available in the account holder’s HealthSaver account. This requirement ensures that account holders do not incur overdrafts or unauthorized charges.

55. The HealthSaver Card can be utilized at medical service providers, standalone pharmacies (such as DisChem, Clicks, and Link pharmacies), and veterinarians located within South Africa. This broad acceptance allows account holders to use their funds conveniently for necessary services.

56. It is important to note that the HealthSaver Card cannot be used to withdraw cash at a bank, ATM, or merchant, nor can it be utilized to pay in-store merchant accounts. This restriction helps to ensure that the funds are used strictly for approved medical and related expenses.

57. An account holder has the right to cancel their HealthSaver Card at any time by notifying Momentum in writing. Upon cancellation, the account holder must destroy the card by cutting through the magnetic strip and card numbers. The account holder understands that they will remain legally responsible for any transactions made if the card is not properly destroyed and is subsequently used by an unauthorized individual.

58. Both Ukheshe and Momentum will treat all personal information of the account holder as private and confidential. The account holder agrees that Momentum may share their personal information with third-party service providers for the operational needs of the HealthSaver Card. This provision ensures that necessary data is shared while still maintaining privacy standards.

59. It is important to note that all transactions conducted using the HealthSaver Card will not be reflected on the member’s HealthSaver tax certificate. Therefore, the account holder is responsible for retaining these receipts for submission to the South African Revenue Service (SARS) for tax purposes.

60. These terms and conditions are reviewed and updated annually. For the most current version, account holders are encouraged to refer to the latest terms and conditions available at momentum.co.za.

+You may choose to utilize additional products, such as HealthSaver, offered by Momentum Metropolitan Holdings Limited (Momentum), to seamlessly enhance your medical aid experience. It is important to note that Momentum is not a medical scheme and operates as a separate entity from the Momentum Medical Scheme. The complementary products provided are not classified as medical scheme benefits. Therefore, it is possible for individuals to be members of the Momentum Medical Scheme without subscribing to any of the complementary products offered.