Hospital Plans versus Medical Aid

    Many people misunderstand the difference between Hospital Plans versus Medical Aid.

    A Hospital Plan is a medical insurance that only provides financial cover for hospital treatments.

    Policyholders must pay out of their own pockets for all medical costs incurred outside of a hospital.

    Although hospital plans are limited to hospital expenses, they remain a more affordable medical cover option.

    A Hospital Cash Plan, on the other hand, is an insurance policy that puts money directly into the pockets of patients when hospitalised.

    Hospital Plans versus Medical Aid

    Not only can hospital cash plans reimburse loss of income when in a hospital. The direct cash payments can cover medical cost shortfalls or any other expenses such as household bills.

    Medical Aid schemes, on the other hand, can provide comprehensive cover.

    Apart from hospital costs, medical schemes offer extra benefits such as treatment for chronic conditions, dentistry, pre and post-natal needs and over the counter medication.

    However, medical aid comes at a cost.

    Studies have shown that less than 20% of the South African population has medical aid.

    The popularity of hospital cash plans has increased because medical schemes are unaffordable to most of the population.

    Hospital Plans versus Medical Aid

    What Is Covered?

    • Medical Aid provides unlimited –in-hospital cover generally up to R1 million annually
    • HCPs provides fixed daily cover while hospitalised

     

    • Medical Aid often only covers costs for stipulated network hospitals
    • HCPs pay daily benefits irrespective of whether using a private or public hospital

     

    • Medical Aid pays hospitals directly for treatment costs
    • HCPs pay directly to members

     

    • Medical Aid payments are tax deductible
    • HCPs are not

     

    • There are no age limits to join Medical Aids
    • Applicants must be between the ages of 16 t0 75 years to qualify for a hospital cash plan

     

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