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.
Cash Back Plans
Hospital Cash Back Per Day Cover
A hospital cash back plan pays you for every day that you are in hospital. It is not a medical aid and will not have the benefit of the in-hospital medical aid cover. In other words, hospital cash back plans will pay you cash but will not be accepted by any hospital or doctor as a means of reimbursement for medical services. This confusion abounds in the South African market where unknowing consumers sign up for hospital cash back plans with the misunderstanding that it is similar to a hospital plan medical aid. It is therefore important to understand the benefits and pros and cons of a hospital cash back plan with payment for each day of hospitalisation.