subject: What Is The Difference Between A Medical Aid And Hospital Plan? [print this page] What Is The Difference Between A Medical Aid And Hospital Plan?
Not long ago, the only kind of medical cover you could get was what came out of your own pocket or an overpriced medical aid. Insurance companies looked at this and decided that the average blue collar worker needed some kind of medical cover that suited his pocket in case of emergencies. There are also a lot of people who are generally healthy and do not make full use of their medical aid benefits. For people like this, insurance companies invented the hospital plan.
The Clientele hospital plan differs from a medical aid in a number of ways.
Out of hospital benefits: This is one of the key selling points of a medical aid. They also have many different options based on how much cover you can afford. There is the savings plan where all out of hospital expenses bar specialists come out of a savings fund. Then there is the yearly limit scheme, where all out of hospital expenses are limited to a certain amount each year. The Clientele hospital plan, or any other for that matter do not provide for any such expenses bar one or two vital specialists, the rest is your own problem.
In hospital benefits: Both kinds of health care options offer similar ranges of in hospital benefits. Both a medical aid and the Clientele hospital plan will cover you for most procedures and specialist services. There are generally some limits on how much you are covered for and what you will have to pay for out of your own pocket. This is very similar to the concept of the excess payment on an insurance policy. The major difference is that a hospital plan will pay out a certain amount each day that you are in hospital. This can be used at your discretion. You can use it to help support your family while you are incapacitated or you can use it to pay for the hospital bills that you will still owe.
How much a hospital plan pays out and covers you for can be adapted to fit your pocket. The less you pay each month, the less you will get each day you are in hospital. Some hospital plans offer higher payments if you land up in intensive care. This money can be used to pay for whatever the hospital plan does not cover you for as well as make up for income lost during the time you are in hospital.
If you have children, it is preferable to belong to a medical aid. Your whole family can be covered by a single policy and it will mean you are covered for unforeseen injuries and illnesses in your children. However, a hospital plan might be a better option for a single person who is in good health and does not often need to visit the doctor.
