Health Insurance and Medical Aid

More often than not, health insurance and medical aid are considered the same thing. In actuality, health insurance is not a medical aid scheme, rather it’s a pre-paid preventive healthcare service for families, couples, individuals and companies.
Here are a few key differences between medical aid an health insurance:

• Medical Aid is governed by the Council for Medical Schemes
• Health Insurance is governed by the Long Term Insurance Act
• Medical Aid pays directly to registered providers
• Health Insurance pays to the insured
• Medical Aid pays day-to-day benefits limited to those stipulated in the National Recommended Price list (NRPL)
• Health insurance provides pre-paid day-to-day benefits and gives patients access to a network of registered healthcare practitioners and prescribed acute and chronic medication
• Medical Aid pays in-hospital benefits stipulated in the National Recommended Price List
• Health Insurance pays a limited stated benefit that covers in-hospital expenses for procedures, consultations and other services required by the insured

While a health insurance policy doesn’t offer the same level of cover that medical aid does, it’s still a popular choice for families and individuals who can’t afford to pay exorbitant medical aid premiums. Essential Med offers a standard health insurance policy that ensures you have access to private healthcare when it is needed most. With day-to-day benefits for out-of-hospital treatment and access to over 3000 network-registered health professionals, it’s the cover you need without the hefty price tag.

Source: http://exploring-cape-town.tumblr.com/post/66321180201/essential-med-guide-to-health-insurance-vs-medical-aid