Do Your Homework Before Switching Medical Schemes

January 20 - Many people started to reassess their health insurance medical schemes as the new year kicked in, due in part to the fact that the cost of contributions have risen by up to 15% through some plans.

Many will undoubtedly consider switching to a cheaper plan, which could make a lot of sense - if done properly.

According to Jan Howell, an actuary with OMAC Actuaries and Consultants: "By switching to a plan with lower benefits members should be groups with healthier members, and therefore pay lower contributions."

"The savings made through lower contributions could be used for GP visits and other expenses out of pocket as they are needed," he added.

A successful move will undoubtedly depend on whether the consumer understands the different structures of health schemes on the market.

He also urged them to learn about their rights and what their insurance has to cover by law.

"Essentially, there are certain conditions that your medical scheme is obligated to cover, irrespective of the plan you are on," he explained. "This means that even if you are on hospital plan, you must be covered for PMB's (Prescribed Minimum Benefits), including where incurred out of hospital."

Other factors that should be taken into account include the amount that the member's employer is paying.

If it is a percentage contribution, it? may be more beneficial for the member to belong to a more expensive plan, while a fixed amount contribution calls for a lower plan.

The bottom line is for consumers to do their homework before making any changes to find out what really works for them and their families.