Bonitas Member Magazine Issue 1. 2020 | Page 23

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. Page 22