Medical aid monthly premium and Salary

kokzn

Senior Member
Joined
Oct 23, 2006
Messages
904
Why do medical aids use salary categorization?

E.g.: Discovery key care:
R564 if you earn less than R6 800 pm
R831 if you earn more than R6 800 pm

Are the benefits different with regard to the above scenarios?

There are many other companies that use salary categorization as well.

Is this fair? Please tell me the logical reasoning to this practice...
 

AntiThesis

Executive Member
Joined
Jul 30, 2005
Messages
5,324
I'm not sure what the justification is really... I'm sure someone here has an idea.

Just wait till we have the National Health Scheme :D
 

LancelotSA

Banned
Joined
Aug 20, 2007
Messages
14,713
As far as I am aware it was legislation that was put in place to try and make medical aid affordable to everyone regardless of their income. All medical aids have at least one option which has this type of pricing. The idea is that the higher income earners effectively subsidise the lower income earners. It is usually an entry level plan.

The benefits are exactly the same for all members across the salary ranges.
 

DJ...

Banned
Joined
Jan 24, 2007
Messages
70,288
As far as I am aware it was legislation that was put in place to try and make medical aid affordable to everyone regardless of their income. All medical aids have at least one option which has this type of pricing. The idea is that the higher income earners effectively subsidise the lower income earners. It is usually an entry level plan.

The benefits are exactly the same for all members across the salary ranges.
This might have been true had they actually lowered the entry pricing. But instead they increased it as well as the higher earners rate. There was an article in Noseweek about this IIRC...
 

LancelotSA

Banned
Joined
Aug 20, 2007
Messages
14,713
This might have been true had they actually lowered the entry pricing. But instead they increased it as well as the higher earners rate. There was an article in Noseweek about this IIRC...
Well that was the intention.... but the medical aid also has to maintain it's solvency levels (above the legally required 25% reserve) so they can't exactly lower their fees too much! As soon as you fall below a certain level of solvency you get warned to get it back up within a certain period of time or face closure...
 

DJ...

Banned
Joined
Jan 24, 2007
Messages
70,288
Well that was the intention.... but the medical aid also has to maintain it's solvency levels (above the legally required 25% reserve) so they can't exactly lower their fees too much! As soon as you fall below a certain level of solvency you get warned to get it back up within a certain period of time or face closure...
Thats a nice excuse for them to fall back on whilst they rape the consumer. Its far too easy an excuse to use...
 

LancelotSA

Banned
Joined
Aug 20, 2007
Messages
14,713
Thats a nice excuse for them to fall back on whilst they rape the consumer. Its far too easy an excuse to use...
Well there is an option if you are opposed to medical aids.... fund your medical expenses yourself.

If you say that is not an option because of how expensive it is, then read what I said again and rethink the fact that it is an excuse! And then everyone bleats when the government says they are going to step in and try to control private medical costs more! The amount you pay on a medical aid is directly linked to the costs of medical procedures etc so perhaps the blame needs to be placed at the feet of the doctors, hospitals, medical companies who are making a killing....

Example : 10 minute rush job at a gynae for a pregnancy scan. A quick ask if everything is OK, a squirt of KY on the belly, about 4 minutes of moving a "scanner" over the belly, a few comments of everything looks fine, a see you in three weeks = R300. And as mentioned, not once off... every three weeks!!
 

Pitbull

Verboten
Joined
Apr 8, 2006
Messages
62,238
Only certain medical aids do.

The medical aid I'm on I pay R 6000 a month for 4 members :eek:
But I only need to cover 40% as my employers covers the other 60%
I pay about R 2 400 - 2 500 there about
 

LancelotSA

Banned
Joined
Aug 20, 2007
Messages
14,713
Only certain medical aids do.

The medical aid I'm on I pay R 6000 a month for 4 members :eek:
But I only need to cover 40% as my employers covers the other 60%
I pay about R 2 400 - 2 500 there about
You need to realise that their are open and closed plans. Open plans can be joined by anyone, closed plans are for employees only or specified members. Now open plans all have at least one option which is salary based.

You are paying a helluva lot of money... no matter what you are getting for it!
I am assuming 2 adults and 2 kids. Very expensive!
 
Top