You may be young and healthy now but there is no guarantee that you will not need medical care very soon. In fact it is definite as you get older. One of the major reasons for medical aid claims relates to chronic conditions and this means ongoing medical treatment which can be costly. While government facilities in South Africa does offer chronic care, many South Africans prefer private health services. But this means having the financial resources to pay for it. If a full medical aid is not an option for you then you can opt for hospital cover which includes chronic benefits.
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Hospital Plan Products and Prices
A hospital plan means different things to different people but these types of products do not end with a medical aid or cash back insurance. In fact there are so many related financial products in the South African market that it is confusing to consumers. Of course more people are aware of the common hospital plans – the medical aid for hospitalisation only or the insurance that pays you cash for each day in hospital. But there are also many add on products such as gap cover and premium waiver, both of which are only applicable to a medical aid, even if you only have hospital cover.
Hospital Plan for the Unemployed or Lost Your Job
Not only is it difficult to find a job in South Africa these days but with the economy showing slow growth, losing your job is very much a reality that every South African worker has to consider. Sometimes you as the worker may be at fault and despite repeated warnings, you may be fired. Whatever the case, being unemployed is one of the most difficult times in your life particularly when others in the household do not have stable employment. Fortunately hospital plans either in the form of a medical aid or hospital cash back plan do not discriminate based on your employment status. In other words any person can have a hospital plan even if they are unemployed.
Hospital Plans That Cover Fertility Treatment
It is often disappointing for South Africans, particularly women, to discover that hospital plans do not cover fertility treatments. This applies to both of the different types of hospital plans – a medical aid or cash back plan. The reasons may differ but the bottom line is that a hospital plan does not include cover for what is deemed non-essential, similar to cosmetic surgery. Many people wanting to conceive view fertility treatments as essential medical procedures but hospital plans are there to cover its members for medical costs accrued due to illness, especially since it can result in death in some instances. Seeking fertility treatments to fall pregnant is your right but in South Africa unfortunately, it is only an option those who can afford it and not for every medical aid member.
Waiting Period for Hospital Plans
There are different waiting periods for hospital plans and it is important to understand how this can affect your cover. In the ideal world, a person would sign up for a hospital plan, be it a medical aid or a hospital cash back plan, when they are young and healthy and do not need the cover. These financial products are a form of protection for when you need it in unforeseen circumstances, not for capitalising at the last minute when the situation is at hand. Waiting periods mean different things for different financial products but in terms of hospital plans with regards to medical and cash back cover, a waiting period means any span of time when you cannot claim but have to keep paying your premiums.
What is a hospital plan in South Africa?
A hospital plan can at times be a confusing financial product to South African consumers. All too often the term is used loosely by media agencies in the advertising of these products and consumers may sign up for these products without being sure of what they are buying. The South African financial services market is diverse, and there are products that often overlap. However, in most cases, a hospital plan in South Africa refers to one of two products – a medical aid hospital plan or a hospital cash back plan. Do not let the word ‘hospital’ detract from the fact that these are two totally different financial products.
Deferred Period Rule and Meaning on Hospital Cash Plans
If you are signing up for a hospital cash back plan then there are certain rules that you need to be aware of at the outset. There is a misconception among South Africans that a hospital cash back plan is a route to easy money. It is a form of financial protection when you are severely ill and hospitalised. The deferred period rule ensures that payouts are only made to those who are in a position where they cannot work for a period of time and may therefore be financially inconvenienced by being hospitalised.
Student Hospital Plan (Local and Foreign University Students)
Students are usually on a tight budget but have the same medical needs as adults. Unfortunately if you are in university or college, you may not have the protection of being on your parent’s medical aid or hospital plan cover and have to go it on your own. While South African citizens are not required to have hospital cover, if you are a foreign student studying in the country then medical cover is necessary. Local or foreign, as a student you still want the best deal but before you sign up for a cheap hospital plan there are several points that you have to take into consideration.
Cheap Hospital Plan Cover
At a time when consumers are cash strapped, many South Africans search for cheap hospital plans to save on the cost of this cover. Whether it is medical aid hospital plans or a hospital cash back plan, consumers need to remember that there is no single company or plan that is cheaper than the rest yet offers the same benefits. It boils down to common sense – if any company in South Africa offered a cheap hospital plan that had the same benefits as other companies offered then most consumers would flock for the less expensive option. Instead there are around a hundred medical schemes in South Africa and scores of insurance offering hospital plans.
Hospital Plans for Pensioners and Senior Citizens
Pensioners and senior citizens are just as much in need of a hospital plan, if not more so, than their younger counterparts. This refers to both medical aid hospital plans and a hospital cash back plan. However, there may be some issues relating to both these types of cover that seniors need to be aware of. First and foremost, medical aids cannot refuse membership based on age or health status but their may be implications in terms of cost and waiting periods. On the other hand, hospital cash back plans may refuse membership based on age – these are insurance policies and even if you are accepted as a senior, be prepared to pay a pretty penny for cover.