The past decade has seen South Africans facing unprecedented financial pressure. Initially, that pressure resulted from a global recession. However, the effects of the Covid-19 pandemic continues to delay the hoped-for economic recovery. Consequently, most consumers have tightened their purse strings and shop with far more restraint than previously necessary. The tendency to seek more affordable medical aid is growing and driving scheme managers to look for ways to keep premium prices down or, at least, to minimise any unavoidable price hikes.
Sadly, price hikes are inevitable. An all-time low Rand/Dollar exchange rate has meant that imported equipment and pharmaceuticals have become more expensive, causing treatment costs to soar. Under such circumstances, schemes could be forced to choose between increasing their premiums or facing closure. Fortunately, there is another alternative. Like Medshield, many fund managers have found ways to absorb the increased costs yet keep their medical aid products affordable.
One of the more obvious ways to keep prices down is to limit the benefits on offer. It is now many years since schemes first adopted this policy, with the launch of the first hospital plans. With this type of cover, the benefits remain substantial but are only accessible when the member is undergoing treatment as an in-patient. For the remainder of the membership year, he or she must pay all other medical bills. However, government legislation to include year-round prescribed minimum benefits has made this a viable option for members with chronic illnesses. Also, Medshield has incorporated some equally valuable added benefits to provide an affordable medical aid option that is more comprehensive than most competing hospital plans.
In many cases, scheme managers have resorted to reducing the value of the benefits available under the terms of their comprehensive products to absorb their increased costs. However, such cuts could mean that certain contingencies may no longer be covered when exceeding the permitted claim limits. It is, therefore, vital that prospective members take note of such constraints and how these might affect their anticipated needs or those of their dependents.
Regardless of price, affordable medical aid must meet the known and anticipated requirements of the main member and all dependent members. If you are confident you can cope with the benefit caps and any possible co-payments, go ahead and sign up. If not, keep looking. One of the best ways to do this is to browse one or two comparison sites and obtain some online quotes to evaluate. First, however, you need to be sure to check and compare the core benefits of each. Don’t just glance at the premium prices and settle for the cheapest.
Fortunately, skimping on the benefits is not the only way to create a more affordable medical aid product. Medshield has built a network of preferred service providers, consisting of clinics, specialists, pharmacies and other healthcare professionals. When calling on them for treatment, members enjoy the preferential tariffs that enable the company to maintain its highly competitive premium prices without compromising member benefits.
Medshield’s focus is always on providing relevant core benefits. In support of this policy, all of Medshield’s highly affordable medical aid products include some unique core additions at no extra cost.
