Question

CEF 04 2022 – Entitled/Non-Entitled Medical Expenses

Question

I have had a few of the Wolf Creek employees (St Helenian) ask if I could find out why Wolf creek falls under the "non-entitled" category in regards to medical expenses.

A few of these employees have been on the Island and working on base since the start of taxation on the island and feel that their company should be entitled since they have been paying income tax from the start.

Response

The definitions of entitled and non-entitled are laid out clearly below from the Policy on Charging for Access to AIG Medical Services and can be found here: https://www.ascension.gov.ac/public-document/policy-on-charging-for-access-to-aig-medical-services

“Entitled organisation” means a representative organisation of those liable to pay the Business Levy as identified in Business Levy Ordinance 2012 and / or a company liable to pay tax on income under the Income Tax Ordinance 2001.

“Non-entitled organisation” means an organisation that is not liable to pay the Business Levy as identified in Business Levy Ordinance 2012 and / or liable to pay income tax under the Income Tax Ordinance 2001.

As can be seen it relates to businesses that are subject to the Business Levy 2012, or pay income tax. The tax status of employees (which for the purpose of this email is taken to include contractors) is not relevant. 

Page 4 of the policy on charging to access to AIG medical services explains the rights of employees of all organisations, and the difference in treatment between the two types of organisations when it comes to billing for medical services. Invoices sent to employing organisations ensure anonymity of patients who receive treatment from AIG medical services.

The current system provides a more transparent billing process for employers who have employees that receive treatment. Employees will not be required to pay anything for their treatment, regardless of entitlement (or not) of their employer.

Consequently, all employing organisations will now pay their fair share when it comes to healthcare, and individuals who pay income tax can be assured their contributions are being used in a manner which assists the Ascension as a whole, rather than subsidising their employer's healthcare bill.

Councillor George

Submitted: 1 August 2022

Response: 19 August 2022