Medical Aid vs Hospital Plan

[Bobbin]

Need some advice...

I'm 29y/o with no chronic ailments. In all my life I can probably count how many times I've been to a doc or dentist. Maybe a visit once a year at most. I don't get sick very often and the last time I was sick enough to visit a doc was probably the swine flu thing back in the day.

Non-smoker, relatively active, no known health problems or family related issues. My late grandfather did have cancer though.

I have to pay my full medical aid contribution myself, I'm a consultant labor brokered into another company so I doubt this will change. Thing is I'm spending nearly 1.5k a month for something I've hardly used with Momentum. I'm really trying to reduce my living costs so I can use money to invest.

So I'm wondering if I can reduce this spend significantly by going for a hospital plan, something like this for instance --> https://www.clientele.co.za/siteimgs/documents/Hospital-Plus-Plan.pdf

What are the risks, am I missing anything? Am I being silly by either not going for it or by thinking about getting rid of the medical aid? Anyone else done the same?

 

[porchrat]

I run a hospital plan. Looking at how little I visit doctors I don't really make use of the extras that come with a full medical aid. Decided to save that cash instead.

 

[Pho3nix]

As a consultant you should have the Hospital Plus Plan but keep in mind that isn't technically hospital cover. It will just give you money, for each day your in hospital.
Rather down-grade to just a hospital plan (covers all private hospitals in case of emergencies).

Currently going through the same exercise, sadly there are few hospital plans which are actually much cheaper than a normal savings account.

Currently on a Essential Saver with Discovery. Nothing cheaper with the same benefits from what I could see.

 

[Pho3nix]

I run a hospital plan. Looking at how little I visit doctors I don't really make use of the extras that come with a full medical aid. Decided to save that cash instead.

Link and details?

 

[SJe]

Agree with Pho3nix. The hospital plus plan is medical insurance with a minimum of 6 month waiting period to get money out of them. Rather move to a hospital plan option with one of the medical aid providers.

 

[Napalm2880]

I'm 30. No chronic health issues, and go to the doc with flu maybe once every 1.5yrs. Check out Discovery Classic Delta Core at R1177 pm. The only catch with the delta option is if you're not near a Delta hospital you pay an additional +-R5k if you're hospitalized at a non-delta hospital. Since I live and work near Delta hospitals this is less of a risk.

To me it makes more sense to be on a full medical aid once you get married/have kids or if you suffer from some kind of chronic condition.

 

[Napalm2880]

Also look at this link:

https://www.discovery.co.za/discovery_coza/web/linked_content/pdfs/health/core_series_2014.pdf

The main difference between Classic and Essential is that Classic is 200% of the rate for GP's and Specialists and Essential is 100% of the rate for GP's and Specialists.

 

[chrisc]

I have a Liberty Hospital Plan with gap cover. No savings, just the bare minimum. Does real well for me for the past 34 years

 

[Pho3nix]

I'm 30. No chronic health issues, and go to the doc with flu maybe once every 1.5yrs. Check out Discovery Classic Delta Core at R1177 pm. The only catch with the delta option is if you're not near a Delta hospital you pay an additional +-R5k if you're hospitalized at a non-delta hospital. Since I live and work near Delta hospitals this is less of a risk.

To me it makes more sense to be on a full medical aid once you get married/have kids or if you suffer from some kind of chronic condition.

My problem at hand. Closest Delta Hospital is decent, not awesome.
Prefer peace-of-mind of being able to go anywhere..

 

[Pho3nix]

I have a Liberty Hospital Plan with gap cover. No savings, just the bare minimum. Does real well for me for the past 34 years

Link?

 

[Dubes]

Bobbin, a "hospital plan" is a false sense of security. You get what you pay for. Just attended a wellness conference yesterday. I realise you are unlikely to get breast cancer but just out of interest the drug Herceptin costs R25,000 per dose and 17 doses are required. For motor neuron disease the experimental stem cell treatment used by Joost costs $7,000 per treatment with 5 -7 needed. Yes, these are "experimental" treatments but they give you an idea of the cost of certain medicines.

Below are some other costs from 2013 (remember medical inflation runs higher than CPI):



Your R2,000 per day is unlikely to cover your costs! And that is ignoring all the small print like, for example, needing to be in hospital for 10 days before the R2k per day kicks in and the need to be hospitalised for at least 48 hours before anything pays out. It also ignores the fact that when arriving at hospital the first thing asked is if you are on medical aid... these things are not medical aids, they are short term insurance plans.


Do yourself a favour, rather see if you can save on your current medical aid by making a few changes. At risk of seeming like I am soliciting business, I'm a registered medical aid adviser, feel free to PM me. As far as I can tell from the brief info you provided you could have a full medical aid with Momentum for under R1,000.... no catches. And then still get up to R450 per month paid back to you.

 

[Aghori]

I was lucky to have had the Discovery Classic that my brother paid for me monthly. It saved my life - my cancer treatment would have been too costly otherwise.

 

[Mike Hoxbig]

Hospital plan is fine if you're healthy and don't have any serious issues wrt your family history. Just be sure to take out gap cover, it will save your ass if the schit had to hit the fan...

 

[Dubes]

Hospital plan is fine if you're healthy and don't have any serious issues wrt your family history. Just be sure to take out gap cover, it will save your ass if the schit had to hit the fan...

Mike, they are referring to short term insurance "hospital plans" here rather than what are referred to as hospital plans (ie in-hospital cover only with day to day expenses being out of pocket) offered by medical aids. The former is independent of any diagnosis and pays per event like a hospital stay. You cannot get gap cover for the former.

 

[Tman*]

If you are "relatively active" I presume you go to gym?

Im on the Momentum Custom option. I combine that with their version of Vitality and if I gym at least 12 times a month they pay me R300 back into my bank account. Additionally I get a 80% reduction in fees for my Virgin Active premium.

Keep in mind that I would have used the Virgin Active membership in any case, so it really makes for me.

Without the reduction in fees or payback I would have paid: R978 (H-plan) + R679 (Virgin Active Premium Membership) = R1657pm

With the paybacks, and reduction in fees I am paying: R978 (H-plan) + R130 (Virgin Active Premium Membership @ 80% discount) + R159 (Multiply) - R300 (cashback) = R967

 

[SauRoNZA]

Personally I don't think R1500 is all that much to be worrying about.

That's bottom dollar MA as it is so you are already saving a whole lot versus the more expensive plans while having an MSA for when you do need something.

If you were at the coast you would be paying less I'm sure, but as it stands I don't think you are overcooking it at all.

 

[Bobbin]

If you are "relatively active" I presume you go to gym?

Im on the Momentum Custom option. I combine that with their version of Vitality and if I gym at least 12 times a month they pay me R300 back into my bank account. Additionally I get a 80% reduction in fees for my Virgin Active premium.

Keep in mind that I would have used the Virgin Active membership in any case, so it really makes for me.

Without the reduction in fees or payback I would have paid: R978 (H-plan) + R679 (Virgin Active Premium Membership) = R1657pm

With the paybacks, and reduction in fees I am paying: R978 (H-plan) + R130 (Virgin Active Premium Membership @ 80% discount) + R159 (Multiply) - R300 (cashback) = R967

You know, this could work for me. I need to know more about the custom option first but thanks! Curious though, you managed to get an 80% discount at VA???

 

[Dubes]

You know, this could work for me. I need to know more about the custom option first but thanks! Curious though, you managed to get an 80% discount at VA???

I did offer my help.... There is no additional cost to you for the help.

 

[Bobbin]

Bobbin, a "hospital plan" is a false sense of security. You get what you pay for. Just attended a wellness conference yesterday. I realise you are unlikely to get breast cancer but just out of interest the drug Herceptin costs R25,000 per dose and 17 doses are required. For motor neuron disease the experimental stem cell treatment used by Joost costs $7,000 per treatment with 5 -7 needed. Yes, these are "experimental" treatments but they give you an idea of the cost of certain medicines.

Below are some other costs from 2013 (remember medical inflation runs higher than CPI):

View attachment 139932

Your R2,000 per day is unlikely to cover your costs! And that is ignoring all the small print like, for example, needing to be in hospital for 10 days before the R2k per day kicks in and the need to be hospitalised for at least 48 hours before anything pays out. It also ignores the fact that when arriving at hospital the first thing asked is if you are on medical aid... these things are not medical aids, they are short term insurance plans.


Do yourself a favour, rather see if you can save on your current medical aid by making a few changes. At risk of seeming like I am soliciting business, I'm a registered medical aid adviser, feel free to PM me. As far as I can tell from the brief info you provided you could have a full medical aid with Momentum for under R1,000.... no catches. And then still get up to R450 per month paid back to you.

Thanks for that. See this is exactly what I was afraid of, thanks for clearing it up.

 

[envo]

Hospital plan is enough if you take the difference between what you pay now vs the hospital plan, say R600. And push that into a savings account.

You won't necessarily pay less and save money, but you're covered for the big things and have a nestegg to take money out of for doctors and specialists. Plus if you never use it you can start investing the money into a money market account keeping a "minimum" in there for other medical expenses. Over an above your current savings and pension plan I might add.

Once you get to the stage of having a family and settling down, go full medical aid (but keep your savings). Medical aids are *******s at best and won't cover everything. 1 hospital visit for a dogbite to the face and a friend of mine now has to go to the bank to get a loan to pay the bills because his medical aid refuses to pay out