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Medical Aid vs. Hospital Cash Plans

Medical Aid

Medical Aid vs. Hospital Cash Plans

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A quick handy guide to the differences between Medical Aid and hospital Cash Plans. This comparison is specific to the South African environment. Other countries may have different rules governing each of these products.

 

Feature

Medical aid

Hospital Cash plan 

Cost

Generally cost more than R1,000 per month for adults. A family of 4 could pay about R4,000 per month.

Prices generally range from R100 to about R500 per month.

Cover

Cover usually unlimited (could be up to millions)

Limited to about R3,000 per day or a R20,000 lump sum (the figure varies from year to year in line with inflation)

Intended use

Intended to cover medical expenses

Intended to cover personal expenses other than medical expenses.

Adequacy of cover

Generally adequate for most hospital stays. There may be ‘Gaps in the amount the scheme pays compared to what hospitals and doctors charge.

Cover generally not adequate for hospital expenses that are usually in excess of R3,000 per day. Adequate for covering most personal expenses.

Minimum benefits required by law

Cover for certain conditions such as diabetes, asthma, HIV, Hypertension and 21 other conditions required in full. In addition 270 other conditions have mandatory cover

No minimum cover requirements.

The differences highlighted here are a generalisation of key features. Its important to familiarise yourself with the details of whatever financial product you choose to buy. For Medical Aid this means reading the Medical Aid Scheme’s rules and for Hospital Cash plans, reading the policy documents.

Comments

Thando

Thando is currently the Group Actuary at Clinix Health Group, having previously served as Actuary in Discovery Limited's R&D Lab. Thando loves tech, design, reading and is very passionate about the development of the African continent. Thando also runs Litmail, a tech startup in the e-communication space. All views expressed are Thando's own and neither reflect nor are influenced by the views of affiliated companies.

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