Is Discovery Health the best medical aid scheme in South Africa?
Unfortunately I don’t have the answer to that question. Here’s why…
A plan on Discovery Health might pay 200% of the Discovery Health rate while Momentum Health also pays 200% of the Momentum Health rate. They look the same right? But they ain’t.
What we need to know is:
What the Discovery Health rate will pay in Rands for a procedure compared to what Momentum Health will pay in Rands.
Unfortunately no-one I know seems to know.
I might also not be the right person to ask for two reasons:
- We only represent Discovery Health, and
- I’m currently a member of Discovery Health
This much I do know
The first step you need to take is compare medical aid schemes, and here are the questions you should be asking:
How big is the scheme you plan on joining?
With medical aid schemes bigger is better as long as the majority aren’t sickly and don’t claim.
So how big is Discovery Health?
Well if we only look at members, they’re by far the biggest open medical aid scheme with 1, 075, 866 members in 2011. If we add in the closed schemes run by discovery health, then you’re looking at 2, 4 million members.
GEMS, a closed medical scheme for government employees, occupies second place with 1, 7 million members.
Is your scheme growing?
A growing medical aid scheme has more money coming into the pot every year. Wouldn’t you like more money coming into your pot every year?
Discovery Health grew by 56, 447 members in 2011. Bonitas, the second largest open medical aid scheme, grew by only 7, 421 members in the same period.
What is the average age of the members?
Young people are generally healthier than elderly people. The more healthy the members are, the less the claims.
So how old is the average Discovery Health member?
31.8 years compared to the average of 34.8 years on other open schemes.
What is the schemes global credit rating?
A credit rating gives an indication of:
- Ability to pay claims.
- Member growth.
- Investment return on the members funds.
- Ability to adapt to industry changes
Discovery health has a AA+ global credit rating for 2011. They have received the highest credit rating amongst all open medical aid schemes for the past 12 years.
Here’s the takeaway!
Based on the above, it seems as if Discovery Health is the way to go. There is only two problems with this…
- Are they offering you affordable premiums?
- Does the Discovery Health rate compare favourably with other medical aid schemes?
I can’t assist you with the last question, but I can assist with the first. In the coming weeks we’re going to discuss the various plans on offer at Discovery health.
Hopefully by the end of November, you will be able to make a decision as to whether Discovery Health is your choice for 2013.
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Until next time.
The InsuranceFundi Team