Everybody wants the best product or service that they can get for the cheapest possible price and it is no different with a hospital plan. However, South African consumers have to be aware of a few points – the medical aid and insurance industry is heavily regulated and there is no best hospital plan that is significantly superior than others yet is less expensive. In other words you pay for what you get. Ultimately what is best for one person may not be so for another – it is a matter of individual needs and affordability. Therefore the term ‘best hospital plan’ is individualistic and any advertisement claiming to have the best product is misleading.
Best Option for Hospital Plan
Firstly you have to decide what you are looking to buy – a medical aid hospital plan only or a hospital cash back plan. They are both different forms of cover so it is important to not confuse the two. Secondly you have to look at what your needs are and what level of cover best suits you for your medical bills or expenses incurred by being in hospital. Thirdly you have to consider what you can afford because the hospital plan has to be sustainable for the long term. In the search for the best option in a a hospital plan, you need to be realistic. You cannot get the highest possible cover at the lowest possible price.
Cost of Best Hospital Plan
Once you have decided what the best hospital plan is for you and your family, take a look at the cost carefully. Medical aid hospital plans are obviously cheaper than full cover medical aid with out of hospital benefit because you are getting lesser cover. However, these medical aids for hospitalisation can still be a pretty penny if you are opting for premium plans. You could end up paying as much as R2,000 per month for a hospital plan medical aid which is almost the same price as cheaper comprehensive medical aid cover. The same applies for hospital cash back plans.
The most common hospital cash back plans offered on the South African market is the R3,000 per day payout. However, there are plans that pay more than this in a day. Some plans go up to R5,000 and beyond. Whether a higher payout makes it the best hospital plan is debatable. However, you need to considers the cost factor – it is great to receive R5,000 per day for each day you are hospitalised but can you afford the monthly premiums to pay for this plan in the months and years that you are not hospitalised?
Payout and Benefits
It is reasonable to assume that the best hospital plan to most of us is the one with better payout (cash plan) or benefits (medical aid). This is not necessarily the case and it is important to read the fine print. When it comes to medical aid, the industry is so heavily regulated that the fine print from one scheme to another does not really change. However, the hospital cash back plans can be a bit more tricky. Standard plans and premium plans have different criteria so understand he implications of each.
Firstly you need to be aware of the deferred period with your hospital cash plan. The deferred period refers to the number of days you need to be hospitalised for before the plans starts paying out to you. Most plans have a 3 day deferred period although premium plans may have a 2 day wait. This means that you have to be in hospital for longer than 2 or 3 days to start getting cash in your hand. Then there is the general waiting period – the time you have to wait from the date of paying your periods before you can make a claim. This can be as long as 6 to 12 months.
The fact of the matter is that both medical aids and cash plans are financial products designed to protect a person when they need it most. It is therefore important to question your intention behind seeking the best hospital plan. Are you truly looking for better and broader cover or are you looking at just cashing in on as much as you can. Do not forget that you are ultimately paying for the product and even if you think you are getting the best hospital plan for your buck, ask yourself if it truly services your medical and financial needs when the time is at hand.