Why is medical aid so expensive? Momentum Health explains...
Why does it cost an arm and a leg to have medical aid?
Africa Melane speaks with Damian McHugh, Chief Marketing Officer at Momentum Health Solutions.
Listen below:
Medical aid in South Africa is expensive, and consumers struggle to afford a plan that suits their needs.
Many opt for a simple hospital plan but get stuck when it comes to regular doctors’ checkups.
According to McHugh, one of the major reasons why medical aid is so expensive is because it is mostly used by older people.
Medical aids work by pooling money from all the members to cover the costs of the individuals who need it at any given time.
If the majority of members are older with greater medical needs, the premiums overall need to be raised to cover that cost.
“When you are young you think you are bulletproof… that is one of the challenges.”
– Damian McHugh, CMO - Momentum Health Solutions
RELATED: Medical schemes on drive to recruit younger people as their membership ages
In addition to this, the cost of healthcare increases with new technology.
McHugh says Momentum Health has plans where consumers can save money by living healthily, in an attempt to encourage young people to join.
Scroll up to the audio player to listen to the interview.