As we enter the last quarter of the year, so too the silly season starts—a quarter filled with year-end parties, Christmas celebrations and the start of summer. But before enjoying the festivities of the season too much, do some basic planning for the upcoming year. There are two planning steps that need to be done before December, the one being your medical aid plan choice for 2017, and the other your 2017 household budget. The two go hand-in-hand I guess and one cannot do the one without looking at and planning the other.
Today, in this blog, I am going to discuss your medical aid plan choice for next year. You will in the coming weeks be notified of your 2017 medical aid premium on your current plan option and, if you want to change your medical aid option, you will have to do some research on the medical schemes’ websites, looking at the different medical scheme plan options.
‘Where to start?’ is the question I always get. I would recommend basing your decision on your past utilization and expected medical expenses going forward, not just on your budget. Your 2016 utilization is available on your latest claim’s statement; include any medical procedures, costs and treatments you have planned for 2017, and choose accordingly. If, for example, you depleted your medical savings account by June this past year and expect more out-of-hospital costs this coming year, consider upgrading to a more comprehensive plan, such as Discovery’s Priority or Comprehensive plan. By spending more on your monthly medical aid premium you will save in the long run as you will have fewer out-of-hospital expenses. What may seem like an additional cost can be a cost saving in the long run—a worthwhile exercise to do.
If you have budgeted and tracked your expenditure this past year, you will be able to draw up a budget for 2017 and, as costs change, adjust the budget accordingly. Looking at your medical utilization in 2016 and expected medical expenses for 2017, you can choose your medical aid plan for 2017 and budget accordingly.
Some medical schemes have launched their premiums for 2017 and premium increases range between 8 and 15%. Medical inflation is twice headline inflation due to the higher cost of medicines and technological advances—hence the high annual increases. Unfortunately these increases are here to stay, so budget accordingly.
Read all the information your medical scheme will send you as it will explain the changes in benefits and premiums for 2017. If you require any assistance, please drop me an email.
If you are on Vitality, you still have three months to get enough points to maintain your Vitality status for next year. Visit Discovery’s website and see your Vitality Points Monitor or ”How to Get Points” for more details.
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