Is Health Insurance More Affordable Than Medical Aid?

Health insurance and medical aid seem quite similar, but there are distinct differences which set them apart. These differences are also responsible for the disparity of the price points at which they are being offered to customers.

Even the cheapest medical aid is usually a bit pricier than a medical aid insurance premium.

SO, WHY IS MEDICAL INSURANCE CHEAPER THAN MEDICAL AID?

Medical aid, which is regulated by the Medical Schemes Act, is essentially Cover based on tariff codes and procedures. It often has a shortfall due to the difference between the National Recommended Price List and the South African Medical Association rates which is what healthcare professionals charge. Affinity Health wrote in January that Medical Aid must, by law, cover Prescribed Minimum Benefits.

Medical Aid has specified yearly limits for procedures and health events do not need to be specifically stated; it also does not include any personal accident disability and loss of limbs cover.

Medical Aid is also not authorized to include death and/or funeral cover as part of the Medical Aid Scheme. It pays in-hospital benefits according to the National Recommended Price List limiting benefits as per the plan.

This is why medical aid premiums usually start at around R750 per person per month.

Are Cheap Healthcare Plans Worth It?

Because medical insurance is still a fairly new product in South Africa, there are many questions about its validity and overall effectiveness.

A major concern of potential clients is the very low pricing of most medical insurance plans, compared to the premiums in the better known ‘medical aid’ market.

Why is it So Affordable?

Medical Insurance is usually very affordable, which can often deter people who believe it to be “too good to be true”. And of course, as with all products, there are scams and knock offs. Affinity Health is, however, affordable as well as reliable, with a track record of covering medical bills for remarkably low monthly premiums.