Providing More Affordable Medical Aid for South Africans
The Covid-19 pandemic claimed the lives of almost 90 000 South Africans. This disastrous event highlighted the vulnerable nature of our health we so often take for granted. The state hospitals could not have coped without the support of private healthcare services, and the death toll might have been much higher. However, relatively few of the nation’s citizens could have paid for private treatment without financial assistance from medical aid schemes.
The government’s promised plan to introduce a National Health Insurance (NHI) Bill to see public facilities and accessibility finally upgraded is still under debate. An outcome any time soon seems unlikely. In the interim, medical aid schemes are doing everything possible to make membership more accessible to all.
An Accessible and Affordable Medical Aid Option
Operating costs for both public and private healthcare services alike tend to increase year on year. Inflationary forces such as rising fuel and energy prices play a role. Also, the high cost of emerging new medical technology adds considerably to healthcare costs. To minimise the impact of rising costs, a scheme’s managers must find ways to keep premium prices affordable without significantly compromising a product’s benefits.
In practice, one particular option has proved to be highly successful in reducing a member’s monthly premiums, although it may not provide sufficient cover to meet everyone’s needs. The hospital plan is a much-improved version of a concept first introduced by the insurance industry. This medical aid option was initially aimed at single young men and women with good general health. The belief was that such individuals could afford to pay for occasional GP visits and prescription charges but could not meet the high cost of surgery and a week or two in hospital as the result of an emergency. The lure of low monthly premiums has since attracted older people and families unable to afford more comprehensive cover. This trend prompted some schemes to seek money-saving ways to extend the benefits of their hospital plans.
While medical aid schemes in South Africa are non-profit organisations, private healthcare providers are dependent on profits. Clinics, pharmacies, laboratories, and specialists all need sufficient patients to operate profitably. When dealing exclusively with preferred suppliers, a scheme can negotiate charges more comparable with the cost of the cover provided, leading to more favourable monthly premiums without loss of benefits for medical aid members.
Medshield has been one of the nation’s leading medical aid schemes since 1968. Through its network of preferred service providers, it offers members a choice of affordable products, including hospital plans, all with many unique core benefits.
