TRADITIONAL, SAVINGS-BASED OR HYBRID – WHAT’S THE DIFFERENCE?

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Q: What is a Traditional option?

Traditional options provide day-to-day benefits in which you have an allocated Rand amount for each condition, treatment or ailment. This means you have a set amount for each benefit, and once used up, you can no longer access this benefit until the new year.

These options offer great peace of mind and, hypothetically, if a member on a traditional option were to use up all their benefits across all the different allocated amounts, they would be able to claim significantly more than they contributed in a single year. This is because traditional options are extremely bene fit-rich and offer great value for money across all the different benefit types and treatments. However, it’s important to note that although traditional benefits offer significantly more value for money spent, if you don’t use these benefits during the course of the year, they don’t accumulate or carry over to the following year. For instance, if you are allocated five GP visits for the year, and you only use three, the other two left over will not carry over to the next year, and in your new benefit year you will start with five visits again. These options are great for those who are looking for the security of allocated benefit amounts, particularly for specific conditions such as special dentistry, spinal surgery and hip replacements etc. The HEALTH SQUARED options in this category include Rise, Aspire, Foundation, Flex, Flex Plus and Ultimate.

Q: I understand there are also new generation options. How do they work?

New generation options are also referred to as savings options. Savings plans provide you with a set Rand amount that is allocated to your savings account on an annual basis, from which all your out-of-hospital (day-to-day) healthcare needs are paid. Our Millennium and Millennium Select options are our new generation options and offer a generous portion of your contributions paid into your savings account. You then have the freedom to use the funds in your savings account on your day-to-day healthcare needs as you require them. They are proving particularly popular among larger and more established families, as one of the great advantages of these HEALTH SQUARED plans is that families only pay for two child dependants, as we provide free cover for the third child, as well as subsequent children.

Q: What exactly is a Hybrid option?

Hybrid options are the best of both traditional and savings-based worlds. These options typically include a savings account, as well as a set of traditional benefits. This allows the savings account to last much longer. Hybrid options are also particularly well-suited to large families who are looking for the security of comprehensive structured in-hospital cover but wish to keep their out-of-hospital cover easy to access and allocate as and when the need arises. HEALTH SQUARED offers an exceptional range of Hybrid healthcare alternatives including the Advance, Optimum and Cobalt options.

Q: So the structured benefits available on traditional options are refilled annually and cannot be carried over to the next year. What happens to the savings portion that may be left over at the end of the year on new generation and hybrid options?

Savings work slightly different. If you don’t use your entire savings allocation, the balance is carried over to the following year. So you can build up quite a large healthcare savings account if you don’t use the full amount of savings during the year.

Q: Which of the three types of benefit structures are proving to be most popular with HEALTH SQUARED members?

We provide members with a balanced range of eleven options across all three categories. However, we have noticed a trend of members rather opting for traditional options, due to the fact that these options provide so much more value for money.