South Africa’s cheapest medical aid schemes and hospital plans in 2018

The latest budget speech tabled for 2018 came with many of the expected tax hikes and budgetary changed – but one expected change did not make the cut, much to the relief of almost nine million South Africans on medical aids in the country.

Many analysts expected the budget to do away with medical aid tax credits, which would have seen millions of South Africans losing out on an annual tax rebate, softened the blow of high monthly premiums to subscribe to private healthcare plans.

While these tax credits are safe for now, in the longer term, their sustainability is still in question – especially as the government looks set on its National Health Insurance plans, and actively seeks methods to finance them.

Analysts have warned that the government’s current plans for the NHI – and the subsequent restructuring of medical aids and how they function in South Africa – could see hundreds of thousands, if not millions of people lose access to quality private healthcare.

One caveat that did slip through the budget was that, even though medical aid subscribers will still get their rebate, it will be capped at R310 per policy holder. On average, this translates to about a 2.3% increase in the receivable rebate.

Analysts have argued that any increase is better than having the rebate removed entirely – but at the 2018 rate, this falls far below the 5% to 6% increases seen in previous years, and even further below the increase in medical aid premiums which ranged between 7% and 10% for the year.

The saving from the lower than CPI increase in the tax credit will be used to cover some of the 2018 budget shortfall, as well as new initiatives like fee-free education.

Cheapest and most expensive medical aid schemes

Using data from Informed Healthcare Solutions’ (IHS’) medical aid data portal, as well as price changes announced by providers last year, BusinessTech has broken down the cheapest and most expensive medical aid plans across the country’s largest schemes.

These are the cheapest and most affordable medical aid schemes from 7 insurers, across all 5 categories: hospital plans, hospital plans with savings, day-to-day cover, GP networks plans, and comprehensive coverage.

For a full breakdown of all medical aid schemes in South Africa, check out BusinessTech’s previous coverage of the GTC Medical Aid Survey for 2017, which screened 23 medical aids (22 open and 1 closed scheme) offering 144 plans.

The full GTC report also includes core and student entry level schemes as well as traditional schemes.

Hospital plans

Hospital plans cover hospital services used when admitted, typically including anaesthetist and surgeon fees. According to IHS, hospitals usually have agreed rates with medical aids, with bills being paid in full.

Hospital Plan with Savings

These plans are the same as the above, but provide members with a limited savings account for day-to-day use.

Hospital Plans with Day to Day Cover

These plans are the same as the above, but typically come with annual limits for day-to-day use, which fall away and are renewed at the end of each year.

GP Network Plan

These plans are typically designed for younger members entering the market for the first time, IHS said. Medical aids work with specific doctors frequented by members. The scheme prices vary depending on income.

Comprehensive Medical Aid

These are the top-tier schemes that typically have unlimited hospital cover, and comprehensive day-to-day benefits.

Read: The biggest medical aid schemes in South Africa – and how much they’re charging in 2018