B-Connect Volume 7

A lot is happening in the world right now, and it affects us in a big way. I will not wander down
the “BRICS” road, nor will I talk about who supplied
who and who is on who’s side. I can tell you that
now is the time for you as a consumer to start
holding onto your hats; the train has left the station,
and if you are not strapped in, it will get bumpy.
Let’s start at the beginning. The most important
part of any insurance product is to understand the
function of that product and where it ts in. We
have seen that consumers don’t really understand
what products are necessary/valuable and at
what age. And yes, insurance is a grudge
purchase, but with the cost of living now, it is
advisable to have some form of insurance.
Medical Aid
Medical aid cover has become very expensive.
Most schemes have had interim increases, which
were not well-received. The main reason was
claims. Providers charge what they want, so if they
raise their cost from R380 per consultation to R750,
they are allowed to. Pharmacies can charge more
due to the import price of medication, and in
general, most of our equipment and technology
are imported. Thus, it becomes more expensive
due to import costs. Post Covid-19, the claims per
member increased, mainly because during
2020/2021, elective procedures were kept to a
minimum. The industry and medical schemes have
not only taken the brunt of Covid-19 claims but
also post Covid-19 and long Covid-19 claims.
Your need ultimately drives what type of plan and
how much day-to-day you require. A healthier
lifestyle could save you money in the long run. If
you are nearing the age of 35 and you do not have
medical aid, you should consider joining a
scheme. The Medical Scheme Act clearly states
that a penalty must be applied if you have not
been on a scheme from age 35, and this penalty is
added for the rest of your life. There are some ways
of getting around this in the employer space, but
there is no option in the individual sector. Let’s do
the right thing. Let’s educate our friends and family
on why medical aid became expensive and why
any person should have medical aid over the age
of 35.