Edgars Hospital Cash Back Plan
March 14, 2016
The Edgars hospital cash back plan is designed to pay off bills, shortfalls, or expenses not covered by a medical aid scheme.
Hospital cash back plans are not meant to replace medical aid cover, but are to assist the family with unexpected expenses incurred by the hospitalisation of a loved one.
Examples could be to make up for lost income, childcare expenses, extra procedures done in or out of hospital, specialist or auxilliary services not completely covered and whatever other personal treat or celebration you would like to spend the benefit on.
An average hospital bill is about R150,000, and the average length of stay 3 days. The daily rate in a general ward is about R2,500, and a hospital cash back plan can pay between R2,500 and R5,000 a day, depending on the individuals contribution and policy.
A 2012 review from a credible source, found that there were as many as 1.5 million hospital cash plans, and that these plans are thriving in South Africa, with about 50,000 new policies sold every month. Major retailers such as Edgars are also now offering these plans.
About the Edgars Hospital Cash Back Plan
The Edgars Hospital Cash Back plan is a low-cost scheme, affordable to everyone, and paying out a benefit of up to R800 a day for the time spent in hospital. The benefit is paid out in one fixed amount AFTER you have been discharged from hospital, and can be used to spend as you see fit. If one is hospitalised for longer than a month, claims need to be submitted every 30 days.
Advantages of the Edgars Hospital Cash Back Plan
- If one is hospitalized overseas, the daily hospital benefit is increased by 100%.
- Every 5 years you receive up to one years premium back in cash (whether you have claimed or not).
- Low affordable monthly premiums.
- Benefits can be claimed from the very first day in hospital.
- Not only does Edgars cater for single member benefits, but for family benefits as well – 2 adults and up to 4 children.
Specific Terms and Conditions
Each scheme or plan has its own terms and conditions which apply similarly to all. Apart from these, those listed below are more specific to the Edgars hospital cash back plan –
- The insured person is covered for a maximum of 180 days in hospital.
- The main insured person must be between the ages of 18 and 60.
- Children insured must be over the age of 6 months and below the age of 21.
- Awaiting period of 3 months will apply to hospitalisation for natural causes.
- The waiting period of 12 months will apply in the event of childbirth.
- A waiting period of 24 months applies to hospitalization for any pre-existing condition.
- Cancellation of the policy needs a 30 day notice period.
Benefit options start at R200 per day cash-back for a premium of R38.50 per month, and can go up to R800 per day cash-back for a premium of R240.50 per month for a family.
The confusion in the South African market comes where the unknowing public signs up for hospital cash-back plans with the mistaken understanding that it is similar to a medical aid hospital plan, which it is not.
In a nutshell therefore, the hospital cash-back plan is generally intended to cover the non-medical expenses that can be incurred due to an unexpected stay in hospital.
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All info was correct at time of publishing