Types of Medical Aid Schemes
Rising health costs and a stalled economy make managing health care challenging for more and more families in South Africa. There are options, but some are inadequate, while others are out of reach financially. To make ends meet in these troubled times takes planning, research, and a bit of knowledge about health care in South Africa.
• Public Health System:
South Africa has elected to create a public health system designed to pay for basic medical services. This scheme is available to all citizens and many residents and covers a large range of medical services. However there are two basic problems common to all public medical aid schemes:
o First, they need to cover many, many people. Everyone, in fact, including many are not contributing significantly to the cost of the system itself.
- Children and the elderly are major consumers of health care services, but not major contributors to the public treasury.
- Unemployed, disabled and indigent citizens are also public medical aid rolls, but are not on the tax rolls that support it.
- Many who are seriously ill can no longer work, and must depend on the healthy portion of the population to keep up the payments.
o Second, the scope of the plan itself is, by definition, an issue. Private medical aid schemes can purposely exclude or limit coverage for medical issues that are too costly to be provided for by the scheme’s financial base. While there are a number of conditions which must be covered by law, there are any number that, if not on the list, would make coverage much more affordable for the remainder of the subscribers. While this may seem unfair, remember that there are multiple private schemes available, some of which specialize in just the kinds of ailments that others try to exclude.
But the public health system cannot be so picky. To exclude individuals from coverage based on the cost of treatments is contrary to the universality which is at the heart of public health care. As a result, the cost of providing free care grows at alarming rates each year.
This dual problem of growing costs and shrinking resources makes it inevitable that any public health system, no matter how earnest and well meaning, will eventually develop significant gaps in coverage.
• Closed medical aid schemes:
The government provides these schemes to many of its employees, schemes which help cover health care where the public system cannot.
Private companies have also begun offering these plans to their workers. In each case, the schemes are subsidized by the employer, which means a more affordable rate for the worker.
• Open medical aid schemes:
While the closed plans are great, they are limited to employees of firms and agencies which offer them as a benefit. Currently, that is less than 5% of the total work force.
To help with the others, open medical aids schemes are available, but at a price. This price is often too high for the average family, but can offer the kind of protection against medical mishaps that will help insure your family’s future.
By checking out the schemes, balancing the coverage options, and making some lifestyle changes that could help reduce your rates, you may be able to find proper coverage in an open medical aids scheme.
For more information, go to Medical Aid Quotes
• Public Health System:
South Africa has elected to create a public health system designed to pay for basic medical services. This scheme is available to all citizens and many residents and covers a large range of medical services. However there are two basic problems common to all public medical aid schemes:
o First, they need to cover many, many people. Everyone, in fact, including many are not contributing significantly to the cost of the system itself.
- Children and the elderly are major consumers of health care services, but not major contributors to the public treasury.
- Unemployed, disabled and indigent citizens are also public medical aid rolls, but are not on the tax rolls that support it.
- Many who are seriously ill can no longer work, and must depend on the healthy portion of the population to keep up the payments.
o Second, the scope of the plan itself is, by definition, an issue. Private medical aid schemes can purposely exclude or limit coverage for medical issues that are too costly to be provided for by the scheme’s financial base. While there are a number of conditions which must be covered by law, there are any number that, if not on the list, would make coverage much more affordable for the remainder of the subscribers. While this may seem unfair, remember that there are multiple private schemes available, some of which specialize in just the kinds of ailments that others try to exclude.
But the public health system cannot be so picky. To exclude individuals from coverage based on the cost of treatments is contrary to the universality which is at the heart of public health care. As a result, the cost of providing free care grows at alarming rates each year.
This dual problem of growing costs and shrinking resources makes it inevitable that any public health system, no matter how earnest and well meaning, will eventually develop significant gaps in coverage.
• Closed medical aid schemes:
The government provides these schemes to many of its employees, schemes which help cover health care where the public system cannot.
Private companies have also begun offering these plans to their workers. In each case, the schemes are subsidized by the employer, which means a more affordable rate for the worker.
• Open medical aid schemes:
While the closed plans are great, they are limited to employees of firms and agencies which offer them as a benefit. Currently, that is less than 5% of the total work force.
To help with the others, open medical aids schemes are available, but at a price. This price is often too high for the average family, but can offer the kind of protection against medical mishaps that will help insure your family’s future.
By checking out the schemes, balancing the coverage options, and making some lifestyle changes that could help reduce your rates, you may be able to find proper coverage in an open medical aids scheme.
For more information, go to Medical Aid Quotes