| Although medical aid schemes differ greatly from | | | | new plan doesn't have a medical savings account, |
| company to company and plan to plan, they can still | | | | refunded to the member. |
| be grouped into two main kinds: Traditional and New | | | | When choosing a medical aid, it is very important to |
| Generation medical schemes. | | | | assess exactly what medical coverage you need. |
| Traditional medical aid schemes offer benefits to their | | | | Almost all plans come with a hospitalisation benefit, |
| clients up to the limits of the plan. These limits are | | | | but the added "bells and whistles" will obviously cost |
| reset every year and no refund is given on benefits | | | | extra on your monthly premium. That will bring you |
| not used up. The cheaper medical aid plans, such as | | | | to the second thing you need to consider; budget. |
| hospitalisation and network plans will fall under the | | | | The cheapest medical aid in South Africa goes for |
| traditional medical aid scheme banner. Fewer people | | | | approximately R600 a month. Adding dependents, like |
| are going for traditional plans, though, as new | | | | a partner or children, will be a bit extra but most |
| generation plans offer major benefits over traditional | | | | plans offer dependent cover for a very small amount. |
| plans for a slightly higher monthly premium. | | | | In summation, before signing anything you need to |
| New Generation plans consist of two components: a | | | | consider the following: |
| risk pool and a medical savings account. The risk pool, | | | | - How much cover do you really need? If you have a |
| similarly to a traditional medical aid, will cover | | | | family, more rather than less may be advisable if you |
| "uncontrollable" expenses up to the limit of the plan. | | | | can afford it. |
| These will include major claims such as surgery and | | | | - How much can you afford to spend a month? This |
| extended hospitalisation. A medical savings account | | | | is obviously very important as you can't afford to let |
| works like a bank account in that a portion of your | | | | a medical aid plan lapse. Murphy dictates that you will |
| monthly premium is kept there to cover "controllable" | | | | need it exactly after it lapses, so that should not |
| expenses, such as GP visits, chronic and other | | | | occur, ever. |
| medications as well as minor procedures. The savings | | | | - Are you a higher risk client? Do you smoke, drink or |
| account on these plans may never exceed 25%, or | | | | take part in extreme sports? These factors will |
| three months, of your annual premium contribution. | | | | influence the amount you pay monthly so shopping |
| The balance of your savings account will be carried | | | | around as much as you can will help ensure you get |
| over to the new year. Additionally, some medical aid | | | | the best deal. |
| plans allows more flexibility with the amount you | | | | - Get help from a professional! Do you own research |
| save in your medical savings account. These can be | | | | so you are knowledgeable on what you want and |
| anything from 5% to 25%. If you terminate your | | | | what you can get, then ask a professional to assist |
| medical aid, the balance left can be transferred to | | | | you even further to ensure you have sufficient |
| your new medical aid's savings account or, if your | | | | cover at an affordable premium. |