Six months ago your client age 45 resigned from employer B to open her own business. She belonged to the employer s medical scheme for five years but her medical scheme membership was terminated on her resignation and she has not yet joined any other medical scheme.Her business is doing well and she can once again afford to become a member of a medical scheme she is also pregnant and the baby is due in five months time.

Before working for her last employer your client was a dependent on her parents medical scheme from age 16 to 24. She then left for Italy where she taught English as a foreign language at a primary school. Here she was a member of her foreign employer s medical scheme for eight years. She returned to South Africa and immediately started working as an au pair for the next eight years. During this time she took out a health insurance policy which she has maintained until today.

You recommend a medical scheme to her with a risk contribution of R2500 per month. The monthly personal savings account contribution of the medical scheme is set at 20%of risk contribution.

1. Calculate the total monthly contribution to the medical scheme for her membership taking late joiner penalties into account. Show all calculations.

2. Explain to your client what waiting periods the medical scheme may apply to her baby after birth.

3.explain to your client why she could not remain a member of Employer B s medical scheme.

4.Your client wants to know whether she can add certain members of her immediate family as dependents on her medical scheme. The scheme adopted the model rules for medical scheme without any additions. Her sisters employer does not offer medical scheme membership & she cannot afford to join a private medical scheme. The sister enquired whether her son 20 years who is fully financially supported by his father & is at university may he be added as a dependent to your clients medical scheme.

Your client s father 72 years stays for free in a flat on your clients property and takes his meals with the family. He has no other family left and his only income is a state old age pension.

Advice your client whether each of the following persons may be added as a dependent on her medical scheme. Provide reasons for your unswer.