Your health should be a priority
Times are tough; they don't seem to be getting any easier. As bills pile up, one needs to find a way to make every penny stretch and get value in everything you are spending on. Your life needs to be planned right to the T. iHound got under the details of a small silent war between medical aid schemes and hospital plans. You decide.
Hospital plans vs medical aid
In recent news reports, medical aid schemes stakeholders have made several attempts to argue that hospital plans and hospital gap cover should be banned as they pose a risk to the profitability of medical aid schemes. To the extent that they have involved Treasury in possibly coming up with a set of rules to try and regulate the sudden surge in people taking out hospital and gap cover.
What's the threat?
The truth is, hospital cover is doing really well in South Africa because of its convenience and affordability, which has placed medical aid under threat. In March 2012, Treasury released a draft of regulations in an attempt to control the sudden hike in hospital plan and gap cover sales in order to protect medical aid schemes. 500 000 South Africans find hospital and gap cover more of a necessity based on its ease of payment and cash back plan. In a medical aid scheme you are required to pay premiums according to what the medical aid scheme has drawn up. With a hospital plan, you are paying according to how much you would like to claim back in the event of an accident as well as your risk level.
The long wait
Hospital cover is proven to be more easily accessible to a market that dislikes paper work and endless tests along with a long 12 month waiting period as imposed by medical aid schemes. With hospital cover you may even confirm your cover on a five minute telephone call with a call center rep. The discipline to pay out of pocket for doctor's fees and only claim when one is hospitalized seems to be a tradeoff many South Africans are willing to make!
So what's the verdict?
It seems the government has backed down for now and plans to ban gap cover and hospital plans have been put to a standstill. The Hound always wants to make decisions based on how they will change your life for the better and still enable you to have extra cash in the back of your pocket. Let us find you hospital cover quotes and you be the judge.
Let the Hound sniff out your quotes now!