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.
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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.
Medical Aid Gap Cover is not Hospital Cover
There is widespread misconceptions regarding different medical aid related financial products and hospital cash back plans. The confusion largely arises from the terms hospital plan and hospital cover which have become blanket terms to relate to any and every one of these products. Gap cover for medical aid is one of the newer products on the market. It is important for medical aid members to fully understand the benefits offered by gap cover and how it differs from a hospital cash back plan.
Maternity Benefits on Hospital Plans
The maternity benefits on a hospital plan is a consideration and concern for family members looking at having a child in the near future. But what hospital plan are you looking at? The term ‘hospital plan” in South Africa is vague. Are you talking about a medical aid hospital plan or a hospital cash back plan? Both are very different financial products and the nature of the maternity benefits on each type of hospital plan differs. It is imperative that you understand the differences in the maternity benefits as pregnancy and childbirth in a private hospital in South African can be very expensive.
Different Types of Hospital Plans
The range of different medical financial products can at times be confusing to the South African consumer. Medical aid. Hospital cash plan. Health insurance. The fact of the matter is that these are all different products with different benefits. There may be some overlap but each product caters for different eventualities. In order to compare hospital plans you have to realise that each product should be viewed separately. In other words, compare apples with apples.
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.