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Many South Africans do not realise the importance of good medical coverage and research has shown a dangerous disregard for healthcare coverage is the norm amongst many people.

Most economists and advisers recommend that for good financial security most people should have adequate home insurance, sufficient retirement savings and good healthcare cover. Yet medical cover is the most unpopular of these three important elements, with many individuals prioritising their home insurance and retirement planning over spending money on medical schemes.

Currently South Africa has a dual health care system, consisting of public and private providers. Private hospitals are mostly used by members of a medical scheme or people who pay for these services out of their pocket.

According to the Council of Medical Schemes (CMS) annual report 2006/2007, by the end of December 2006, 2.98-million principal members and 7.12-million beneficiaries were covered by medical schemes in South Africa.

What is a medical scheme?

A medical scheme helps you to pay for your healthcare needs, such as nursing, surgery, dental work, medicines and hospital costs. It can be described as 'insurance' you take out to cover your health costs.

You (and in certain cases your employer) pay regular contributions to the scheme.

A medical scheme is a non-profit organisation and should be registered at the Registrar of Medical Schemes.

A medical scheme is managed by a board of trustees who are elected by the schemes’ members. The trustees are responsible for managing the scheme to the benefit of its members.

Why should I have a medical scheme?

There are many advantages to belonging to a medical scheme.

• You have the security of knowing your medical needs will be looked after.

• A portion of your contribution can be deducted from your taxable income.

• You can budget for your medical expenses.

• You can get the best medical care available in facilities with state of the art equipment and infrastructure.

• You can undergo surgery and medical treatment when you need it most and not be put on a waiting list until a suitable doctor becomes available to perform the surgery, or until the right resources are available, as in the case of state hospitals.

• You will be treated immediately in an emergency without having to worry whether funds are available.

• You can benefit on a personal level through the different wellness and vitality options that many schemes offer.

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