Medical aid 101: Understanding the
different types of plans
When buying medical aid some people feel a little bit overwhelmed with the various types of plans
available. At Bonitas we offer four different types and trust that the explanation below will give
you a clearer understanding of how they work.
SAVINGS PLANS TRADITIONAL PLANS
A savings plan covers medical expenses in and out
of hospital, subject to the rules of the scheme. A
percentage of your total monthly contribution is
allocated to a savings account. The total annual
amount available in the savings account is available
in advance to use as you choose for out-of-hospital
expenses i.e. GP visits, dentistry, optometry and
medication. For example, if you are allocated an
amount of R10 000 per year in your savings, there is
no limit to what you can spend the money on – but
once it’s finished, you generally have to self-fund
the rest of your day-to-day medical expenses. Traditional Plans cover medical expenses in and out
of hospital, subject to the rules of the scheme. There
is no savings component. Consequently, they cover
day-to-day benefits per category up to a set limit, for
example, separate GP benefits, dental care, optometry
etc. Once one category of benefits is exhausted, the
member has access to the alternative categories for
the remainder of the year. If the benefit is not utilised
by the end of the year, it falls away.
HOSPITAL PLANS NETWORK PLANS
These plans cover you in-hospital for emergency
and planned procedures. You are responsible for
your own day-to-day medical expenses. If you take
responsibility for your own health and know that
prevention is better than cure, a hospital plan will
work for you.
Network plans provide individuals with in-hospital and
day-to-day cover at a quality network of providers,
offering you more value for money. Members may only
make use of certain doctors, specialists, pharmacies
and hospitals.
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