<\/p>\n
You can also listen to this podcast on iono.fm here.<\/p>\n
JIMMY MOYAHA: As we approach the end of one year and potentially the start of a new year, some important conversations start creeping up on us, especially when it comes to how it is that we approach the new year and what sorts of plans we have in place for that new year.<\/p>\n
This is where the conversation around medical coverage and medical schemes becomes all the more important, because choosing the right plan is essentially what we all aim to do in life. But it can be the difference between being adequately covered and not.<\/p>\n
We\u2019re going to take a closer look at this with principal officer at Bonitas medical scheme Lee Callakoppen, he joins me on the line now to see what we make of this. Lee, lovely having you on the show. Thanks so much for taking the time.<\/p>\n
What goes into identifying the right medical plan? How do I know, as someone looking at medical plans, what I should be looking for when I\u2019m looking for the right plan for me?<\/p>\n
LEE CALLAKOPPEN: First of all, Jimmy, thank you very much for having me on your show and hello your listeners.<\/p>\n
Jimmy, a very important point, it\u2019s that time of the year where medical aids obviously are changing their benefits, but also announcing contributions.<\/p>\n
It\u2019s important that we stay, as consumers, informed in terms of what are we buying; is our medical aid option still the right one for us and, more importantly, under the current economic climate, can I still afford it?<\/p>\n
But at the end of the day, making more informed decisions with your health is a primary consideration, it\u2019s of utmost importance because we know the cost of accessing healthcare is quite onerous on a person\u2019s pocket.<\/p>\n
So Jimmy, to answer your question, what do we look at in terms of the right medical aid plan, I think, importantly, consumers must stay informed because medical aid and its options are normally applicable for 12 months, after which your contributions increase or the actual benefits change, or the option is changed completely. So be informed in terms of what your option will provide you in the following year.<\/p>\n
There\u2019s an array of information that\u2019s available for consumers across the different medical schemes that we normally publish in the public domain. So have [a] read through it.<\/p>\n
At Bonitas, we very pleased to make this publicly available in terms of helping to guide members, and it\u2019s important that you understand that and that you utilise comparison tools to inform and educate yourself in terms of making the right decisions and choosing the right plan that\u2019s applicable to your life stage, and that will be applicable to cater for the needs of your children, or even, if you\u2019re nearing retirement, what is the option that will be affordable for you.<\/p>\n
Other aspects are also considering what is your health condition currently \u2013 do you suffer from a chronic condition, or were you just diagnosed with a chronic condition? Is my future plan going to aid me in making that the right decision?<\/p>\n
If you are not sure, if it\u2019s too much of a minefield of information, regardless of what is available from your medical aid, my best advice, or the default, is consult an independent financial or healthcare broker, which is duly accredited by the Council of Medical Schemes to help you to make that informed decision.<\/p>\n
JIMMY MOYAHA: Lee, can we take a closer look at the medical increases? We know that for the longest time we\u2019ve had conversations around whether or not the medical increases are in line with CPI [consumer price index].<\/p>\n
What goes into a medical increase from a medical fund perspective, can we take a look at the increases, a lot of them have been announced and been made public over the last two weeks or so. What do these increases mean for consumers?<\/p>\n
LEE CALLAKOPPEN: Directly, what it means for consumers is that you end up having to pay more in terms of what your medical aid option or what their contribution was from the previous year.<\/p>\n
One needs to understand why healthcare cost is increasing, Jimmy, each year.<\/p>\n
A scheme is not for profit, so it\u2019s not that a margin or contribution is increased because there are shareholders for which you have to give a better return in that regard.<\/p>\n
But the medical scheme, all the contributions go into what we call a social solidarity or pooling of funds to cater for the collective of all the members within that scheme.<\/p>\n
We have to consider, in terms of healthcare costs continuously increasing, the burden of disease is increasing.<\/p>\n
So we have to be very prudent considering also our regulatory and compliance matters, to have minimum solvency levels, where we have to consider what is the composition of the scheme.<\/p>\n
First of all, what\u2019s the membership like, their age profile, and we have to consider in terms of what the utilisation was considering actuarial calculations for the previous years. We have to consider the cost of medicines increasing, of technology and so on.<\/p>\n
Then we have to take a very prudent approach in terms of how do we cost or put a contribution forward to ensure that it\u2019s sustainable, that we are able to cover members on those various options, to have access to the best quality healthcare at the lowest possible rate.<\/p>\n
For that reason, yes, the percentages are normally higher than CPI, but we as schemes and specifically as Bonitas, we have constantly looked in terms of how we innovate and introduce new options that are able to cater for lower contributions but not deny the quality of care.<\/p>\n
To that end, and by way of example, we\u2019ve introduced BonCore, which is a digital-age option where members can access virtual consultation but also utilising specific networks \u2013 because what you trade off for a lower premium is to access a specific network at which the scheme was able to negotiate better rates to make that option available.<\/p>\n
So it\u2019s a delicate balance in terms of finding affordability with the right cover to ensure that the member\u2019s needs are met.<\/p>\n
JIMMY MOYAHA: Lee, speaking of that right cover, before I let you go, how do I know that I\u2019ve got a good medical scheme on my hands?<\/p>\n
What are the signs that I need to be looking out for, especially when assessing the different plans and different offerings that are being put in front of me by the medical schemes out there?<\/p>\n
LEE CALLAKOPPEN: Jimmy, in short, choosing a medical scheme, it starts with considering the reputation of the band.<\/p>\n
How long have they been around? Are they financially sustainable in terms of being able to pay the actual future healthcare claims in the event that you are going to claim?<\/p>\n
To that end, the medical scheme, and being regulated under the council or the Medical Schemes Act, utilises solvency; so does the scheme have a good solvency rate, at least above the minimum regulatory standard of 25%?<\/p>\n
So you want to ensure that your scheme has got a solid track record in terms of its financial soundness and is able to deliver that quality of care.<\/p>\n
At Bonitas, another aspect that we also ensure, just to provide another level of assurance, is that we do what we call a credit rating, and we\u2019re proud to say that we boast a AA+ credit rating, which is quite a high level of rating, to ensure the financial soundness of how the scheme is managed and governed.<\/p>\n
Further to the financial sustainability, I think it\u2019s also the ability to look in terms of how your scheme is paying claims, in terms of our payability, in terms of that, and then of course also reserve levels.<\/p>\n
So those are some of the indicators that consumers can look at in terms of establishing signs of a well governed, financially sustainable medical scheme that they choose to have.<\/p>\n
Another aspect, in closing, Jimmy, is that scheme growing?<\/p>\n
Is it attracting newer members and younger members to it to ensure that, based on the principle that I shared earlier on, that a scheme operates on social solidarity, it\u2019s open enrolment where funds are pooled.<\/p>\n
But at the end of the day, a scheme does use cross-subsidisation, where the younger members pay for the older members.<\/p>\n
Ensuring that the scheme continuously attracts newer members coming in, and younger members, enables the scheme to be better placed to be financially sustainable for its consumers.<\/p>\n
JIMMY MOYAHA: Finding the right medical scheme is all the more important as medical needs continue to change. We\u2019ll leave the conversation on that note.<\/p>\n
Principal officer at Bonitas medical scheme, Lee Callakoppen, joining us to take a look at how it is that you could potentially identify the right medical scheme and what it is you need to be looking out for.<\/p>\n
Brought to you by Bonitas Medical Fund.<\/p>\n
Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.<\/p>\n
#Choosing #medical #aid #price<\/p>\n","protected":false},"excerpt":{"rendered":"
You can also listen to this podcast on iono.fm here. JIMMY MOYAHA: As we approach…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[7912,4562,2277,100],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/19275"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19275"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/19275\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}