What do the medical benefit cuts mean

Medical Aid

"Medical scheme members will need to seriously re-evaluate how much bang they're getting for their buck," according to John Sherratt, MD of iChoices

"Medical scheme members will need to seriously re-evaluate how much bang they're getting for their buck," according to John Sherratt, MD of iChoices, an authorised financial services provider. Sherratt's comment comes in the wake of bad news for many South Africans, as major schemes announce rate increases (some well above inflation) for the year ahead, plus exacerbate the situation by cutting benefits too.

The Council for Medical Schemes has instructed schemes to ensure their annual rate increases don't exceed 3% above the Consumer Price Index (CPIX). Although this ceiling hasn't controlled the last 20 years of rate changes, it's a case of better late than never.

This attempt to control escalating monthly medical bills has, however, been tainted by recent news reports on unexpected scheme benefit cuts. So where does this leave the consumer? Determining real value for money is now more difficult than ever, because it seems that all the variables have changed.

Sherratt explains, "We are entering a new era of healthcare products in terms of suitability for individual lifestyles and financial means. The consumer's ability to measure the effectiveness of these products - naturally with expert guidance from a broker - seems to have improved. He continues, "However, the worry is that benefit options are likely to change in a myriad different ways, making the comparison of these from one scheme to another significantly harder."

So how can brokers now effectively compare different schemes on behalf of their bemused clients? One sure way is by using the unique FAIS compliant software package, the iChoices Benefit Calculator^TM. Endorsed by Moonstone Compliance (PTY) Ltd - who manage compliance officers for more than 4,500 brokers nationwide - the tool uses patented technology to compare packages across a range of schemes, thereby assisting brokers in recommending a choice of the three most appropriate healthcare options to the client.

The calculator asks customers a series of questions about their healthcare needs for a year - including visits to doctors, dentists and specialists as well as requirements for medication, glasses, dentistry, pathology tests and radiology. The software then matches the customer's requirements to a range of medical scheme options and compares the costs.

"The Benefit Calculator provides an independent comparison," concludes Sherratt. Amid the increasingly challenging task of assessing the most affordable and suitable healthcare cover, this tool is the broker's answer to identifying real value.

To speak to an iChoices consultant about the Benefit Calculator, call the relationship centre on 0860 350 950.