Resolution says consumers are not out of the woods yet

Resolution, the complete financial services provider, has welcomed the decision of the Reserve Bank to lower interest rates by 100 bases points but has warned that consumers are not out of the woods yet. The country is technically in a recession, and consumers remain cash strapped when it comes to providing for their medical cover needs.

“It is now more important than ever for consumers to shop around for inexpensive and quality medical cover that will meet their needs and dispense of the frills which can cost them more than they need to spend,” said Dr Duncan Laurenson, Managing Director of Resolution Health.

Medical cover is often viewed as a luxury item, but should not be dispensed with in trying times Laurenson said, as unforeseen medical expenses and ever increasing healthcare costs can put them in a difficult financial position should they require medical services. “The public health system is taking immense strain and more and more people are turning to private healthcare, which is expensive”, he said.

Resolution endeavors to offer members core medical cover which is amongst the most affordable in the market. “Why pay R5 000 for medical cover for a family when you can pay R3 700?” Laurenson asked. Medical schemes often offer medical savings accounts as part of their cover options, often making up as much as 25% of the contributions, however, these funds do not belong to the member, and should they leave the scheme, the contributions to the savings account are lost. At Resolution Health, the cover options take a traditional form and only the Progressive Plan offers a compulsory medical savings account, contributions to which are paid out to the member should they leave the scheme.

While medical cover may still remain out of reach for many, Resolution has developed the HealthCard medical savings debit card that allows the card holder to contribute an amount of their choice towards medical savings on a monthly basis for use at any medical service provider or pharmacy. “HealthCard is an excellent alternative for those who cannot afford even basic cover”, said Laurenson,” You earn interest on your money in the account and there is even a credit option for those unforeseen medical expenses. It is a great complimentary product for any Hospital Plan and can be used with or without belonging to any medical scheme.”

“Current trends indicate that more people are cancelling their medical cover due to financial constraints or because of retrenchments which leave them without cover, however, it is unwise to cancel all medical cover and a far better option to look at alternative medical schemes and options within your current medical scheme”, Laurenson added. He advised consumers who have cancelled or downgraded their medical cover in past months to relook at their financial savings due to the lower interest rates and invest in better cover where possible as inflationary pressure continues to increase healthcare costs.