Medical aid is an important cover that is more often required as you get older. In this period, it is likely that chronic conditions may develop, your health care needs grow exponentially and is crucial to ensure a good quality of life. However, the issue of affordability always arises in retirement as your ability to generate an income is limited. If your pension fund or retirement annuity is not sufficient to sustain your monthly budget, then squeezing in the cost of premium medical aid cover is going to be a difficult task.
Medical Aid when Retired
If you have been a member of a company medical aid, you will have to prepare for the fact that your employer will no longer be subsidising your monthly medical aid contributions. However, speak to your employer before making any assumptions as some companies may have individual policies on post-retirement medical aid funding. This may mean that you as a pensioner will have to now bear the entire cost of the medical aid premiums. Unfortunately this happens at a time in life when money is tight and you have to consider other factors like how long will your pension or retirement annuity sustain you if you live longer than expected.
The one advantage of being on a company medical aid, especially if it was a restricted medical aid (refer to the list of medical aids to check which schemes are open or closed/restricted) is that the entire scheme may be subsidised by the employer or sector of industry. While restricted medical aids are only available to employees of a specific employer or sector of industry, you may be allowed to remain on this scheme despite that fact that you are no longer active in the company. It would therefore be unwise to leave this type of medical aid unless you can be sure of cover on a cheaper medical aid with the same level of benefits.
Discounted Medical Aids for Pensioners
There is no medical aid plan that offers you cheaper rates for being a senior citizen. If you do not have medical aid cover from earlier in life, you may now have to pay a late joiner fee on top of your monthly medical aid contributions.
Some plans may appear to be discounted but this cover is actually offering less benefits or only allowing services through network providers – this means that you can only visit the doctors, clinics and other health facilities that is approved by the medical aid.
Downgrading your medical aid at this stage of life may be the only option if you want to afford cover. However, it is also the period of life when you will need more benefits and it is difficult to decide as to whether to change plans at this stage.
Switching to a hospital plan on your medical may be something to consider as most hospital medical aid plans (not cash back hospital plans) offer chronic cover as well, which is essential in the senior years. But you need to be aware of the fact that a hospital medical aid plan will not cover your day-to-day medical expenses, like doctor’s consultations, acute medicines and tests and investigations that are done on an outpatient basis.
Other Medical Aid Options for Senior Citizens
Senior citizens may have to consider other options if they cannot afford to stay on their own medical aid. One option is to become an adult dependent on a relative’s medical aid, like your adult child, as this would allow you a slight discount for not being the main member of the medical aid scheme.
If money is the issue, you may have to consider downgrading your cover but do it cautiously. This may mean having to switch over to doctors who are network providers or only visiting practitioners who are contracted into medical aids and you should take into account whether these medical services are easily accessible to you.
Also speak to your financial consultant as certain financial service providers offer savings plans which are intended to serve as a method of pre-funding your medical aid contributions before you retire. This usually needs to be started before retirement and will only take effect once you retire.
Related articles :
