Don’t be fooled by Medical Scheme percentage increases

Don’t be fooled by what your medical scheme claims to be a small percentage increase on your contributions. Look at the rand value and the benefits. This is the message from Resolution Health Medical Scheme (RHMS) to consumers faced with contribution increases for 2010.

RHMS says that while low percentage increases may look appealing and acceptable at a glance, looking at the amount in rands that they will be left out of pocket could well shock them. “A smaller percentage increase on a large contribution may well work out far more expensive than a higher percentage increase on a low contribution”, said Helene van der Walt, Acting Principal Officer of RHMS. “It is also important to look at the total contribution in rands versus the benefits you receive when planning for your healthcare needs for the coming year”, she said.

Claims loopholes and benefit sacrifices are also key factors to look out for Van der Walt said. “While some schemes limit their over all contribution increases, members could be sacrificing valuable benefits in the process”, she said.

A key example of how rand values can have an impact would be the increase in Hospital Plan contributions for 2010. While RHMS has increased contributions by just R90 per month for a principal member, a key competitor in the market had an increase of R133 per month, the latter with benefit sacrifices.

In the current economic climate, making correct provision for your healthcare is essential. Should you only be in a position to afford Hospital cover for your family due to financial constraints, it is important to ensure that some funds are put away towards your day-to-day expenses and unexpected costs. The HealthCard medical savings account is an ideal tool to deposit what you can afford to into a designated account for use on your medical expenses. When you can afford to pay more into your HealthCard debit card, you can, while when times are tough, you can make limited provision.

‘Don’t be fooled by clever marketing on the part of medical schemes, know your facts and look carefully at what you are getting for your money”, Van der Walt said, “it will make a massive difference to your final peace of mind.”