MEDICAL INSURANCE IS MORE AFFORDABLE THAN MEDICAL AID
Medical aid allows for a more extensive range of cover, however medical insurance is not bound by Prescribed Minimum Benefits (PMBs) and can therefore offer customers a more economical product.
Full medical aid for an individual can start at around R2000, while medical insurance starts from R400. Of course, these prices differ per scheme. Medical aid schemes also pay out higher amounts. So it is only logical that they charge more for cover.
According to the annual report for the 2017/18 year by the Council for Medical Schemes (CMS), combined, all medical aid schemes earned R162.9 billion in contributions and paid out R144.5 billion. After accounting for administration costs, broker fees and other impairments and losses, the industry is left with a net surplus of R8.92 billion, Business Tech reports.
Medical insurance provides specific stated benefits, regardless of the cost of the consultation or hospital stay. So premiums are only a small percentage of the cover agreed on by the insurer and the insured.
Medical insurance is not required to cover Prescribed Minimum Benefits, ensuring that monthly premiums are more affordable. With more benefit options available, medical insurance is suited to all levels of affordability. Policy benefits are clear at policy inception; members know exactly what they are covered for. Members can amend their policies, including upgrading and downgrading plans, at any time.
IF I ALREADY HAVE MEDICAL AID, CAN I STILL GET MEDICAL INSURANCE?
Yes, you can.
They are two different products, which means that there is no duplication or conflict of interest; it is important to note that you cannot belong to more than one medical aid at a time. Many people have resorted to using medical insurance as extra cover or a gap cover. Medical aid benefits run out each year, so having medical insurance as a back-up for emergencies is a great solution. When you’re covered by medical aid, medical insurance will pay towards the costs of hospitalisation not covered by medical aid.
