How to Choose
A look at why we need medical insurance and how to choose hospital plans.
What is a hospital plan?
hospital plan is a form of medical aid plan provided by a medical aid scheme to help the member pay for in-hospital
costs and treatments. The hospital plan usually do not provide any day to medical cover, but there are certain
medical aid schemes in South Africa that has hospital plans that either include limited day to day benefits or a
small medical savings accounts.
plans are a more affordable medical aid option because it only supplies cover for treatment in hospital. All forms
of medical insurance is based on risk, the risk of ending up in hospital is much smaller than the risk of getting a
sickness that can be treated by GP visit only, this is also a factor that reduces the costs of hospital
Hospital plans from
medical aids v plans from insurance companies
If you don't
learn anything else from this article, please remember that a hospital plan from a medical aid scheme such as
Discovery, Momentum, Fedhealth, Selfmed, Sizwe, Bestmed, etc. is in general preferable to a hospital plan from an
insurance company. This because medical schemes are obliged by law to cover a wide variety of chronic and other
health conditions in their products, while insurance companies are not.
Hospital plans take
mainly 3 forms:
hospital plans that require you to use a network hospital.
general hospital where you are allowed to use any private hospital.
hospital or cash back option provided by an insurance company, these plans have extremely limited
Why do we need
hospitals mainly because of the high costs of the medical care provided in private hospitals. The hospital plans
also provide you with the peace of mind that your hospitalization cost will at least partly be covered while you
are in hospital.
It is a
difficult decision whenever you choose to commit to any long term financial costs; these are factors that you
should consider when you choose a hospital plan that will help you get the most from your
provided by medical schemes registered with the Council of Medical Schemes. The council regulates and monitor all
schemes to comply with the medical schemes act and provide you with benefits that suit the premiums. This will also
means that you at least covered for the 270 conditions listed in the prescribed minimum benefits
you with the best benefits. Most schemes now provide additional benefits that will assist in prevention and
screening for certain diseases. Other additional benefits may also include; a limited day to day or savings account
afford. Medical cover are expensive, choose something that provide adequate benefits for the premiums you
you with unlimited annual limits. This is crucial in the event of an accident or extensive treatment because of the
high costs of the hospitals especially during extended or long hospital stays.
take all these factors into consideration you will know how to choose hospital plans that will provide you with the
best cover possible.