HOS­PI­TAL CASH PLANS

Weekend Argus (Saturday Edition) - - FRONT PAGE -

Hos­pi­tal cash plans are in­tended to pay a daily amount to­wards non­med­i­cal ex­penses that might arise when you are hos­pi­talised, such as child­care or loss of in­come.

“How­ever, these poli­cies are of­ten used as low-cost cover by peo­ple who mis­tak­enly be­lieve that the ben­e­fits will cover the costs of hos­pi­tal­i­sa­tion, leav­ing them with­out ad­e­quate med­i­cal pro­tec­tion,” Roseanne Mur­phy Har­ris says.

“More­over, many hos­pi­tal cash plans paid ben­e­fits only af­ter pol­i­cy­hold­ers had spent as many as four or five days in hos­pi­tal, which hap­pens only in rare cases.”

Hos­pi­tal cash plans have there­fore been lim­ited to pay­ing up to R3 000 for each day spent in hos­pi­tal to a max­i­mum of R20 000 a year. The new reg­u­la­tions fur­ther stip­u­late that ben­e­fits should be paid af­ter two days spent in hos­pi­tal, and must be cal­cu­lated from the first day on which you are hos­pi­talised. In other words, if you spend only a day in hos­pi­tal, you will not be cov­ered, but if you are in hos­pi­tal for longer than that, you will be paid out for all days, in­clud­ing the first day, up to the max­i­mums.

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