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.
hospital cover
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.
Medical Aid Hospital Plans
A medical aid hospital plan is gradually becoming a popular choice among South Africans as it is significantly cheaper than comprehensive plans It is essentially still a medical aid but without the out-of-hospital cover that pays for day-to-day medical services. A medical aid hospital plan usually has a chronic medicine benefit included with the in-hospital cover. This means that a member on a hospital plan can rest assured of services when hospitalised in addition to medication for their chronic disease. A medical aid hospital plan should not be confused with a hospital cash back plan – the latter is not a medical aid.
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.