Hints for medical cover

One of the most valuable assets in any small business is something entrepreneurs often overlook – human capital.

Part of making sure you give the best of yourself to your new business is to make sure you’re in good health and one way to invest in your health is to make sure you have a solid medical aid policy in place.

Jeremy Yatt, principal officer of Fedhealth, says besides being a financial safety net if you get sick or are in an accident, a medical aid can encourage you to stay healthy in the long term.

As we approach the end of 2018 and medical aid decisions become critical, Yatt provides small entrepreneurs with advice on what questions to ask when it comes to choosing the most appropriate plan?

1. How healthy are you?

If you’re young, there’s a good chance you’re relatively healthy and not plagued with serious health issues – but this isn’t always the case. You may have a chronic condition, such as diabetes or asthma, where you need regular checkups and medication. If this is the case, will your medical aid plan cover the costs of managing your chronic condition?

2. How much can you afford?

If you’re self employed, you won’t have the luxury of your company paying your salary or medical aid cover. Compile a budget and work out exactly how much you can afford to pay towards medical aid per month, bearing in mind you may have to pay in extra for things like day-to-day medication, medical specialists out of network or even membership fees for your medical scheme’s rewards programme.

3. Is there a waiting period?

Medical aids are able to apply waiting periods, where you won’t be covered for a certain period after you join, depending on your health and previous medical aid cover.

If you’re joining with a preexisting condition, remember you won’t be covered for up to 12 months, so you’ll need to set aside money for any related costs during this time.

4. Planning on starting a family?

Starting a family may be the last thing on your mind but it’s important to factor this in when joining your medical aid as it may become important later on. You can’t join a scheme if you or your spouse is already pregnant because of the waiting period for the “preexisting condition”.

5. What does a hospital plan offer?

If you’re young and healthy, chances are you’ll most likely opt for a hospital plan, so don’t just compare medical schemes in general, compare their hospital plans. A hospital plan has the lowest premiums but also the lowest coverage.

6. What does the fine print say?

Know exactly what’s covered and what’s not, including things like in-network and out-of-network hospitals, co-payments, limits and exclusions. Research the scheme’s payout rate: do they pay medical aid rates or higher rates, which many hospitals and specialists charge?

“Owning your own business is ... about juggling lots of balls in the air at the same time.

“With a solid medical aid plan in place, you can at least know that you have your health looked after should something happen – which means your business can keep going and thrive well into the future,” concludes Yatt.