Difference between Medical Aid and Health Insurance
What is the Difference between Medical Aid and Health Insurance? It’s very common to hear people talking about medical aid and health insurance in South Africa, but many don’t know the difference and, therefore, do not know which option is best for them. It’s quite important to know the difference between a hospital plan and a medical aid scheme, as this will determine the level of medical cover you will receive and the related expenditure.
Health insurance is geared towards providing patients with a lump sum each day they’re in hospital in the event of an accident or an emergency. It is basically a bridge between hospital fees and medical aid funds. It is best to think of it as a short-term insurance product for your health in South Africa since it’s even regulated by the Short-term Insurance Act. It is not regulated by the Medical Schemes Act like medical aid is, hence why it can legally offer cover for situations that medical aid can’t. For example, medical aids cannot provide personal accident disability and loss of limbs cover, as well as death/funeral cover.Get yourself the best health insurance which offers the best health plans at affordable health care costs and you will never go wrong.
Medical Aids are regulated by the Medical Schemes Act. In contrast to health insurance, they must cover prescribed minimum benefits, and, rather than covering specific events, they have specified yearly limits on events. Furthermore, they pay in-hospital benefits which can fall short between the rates of the hospital and the scheme cover. This is one of the reasons why people choose to supplement their medical aid with the best health insurance.There’s many health insurance companies who are offering the best health plans at good health care costs.
Related Articles: What is A Health Insurance?