Discovery Health Medical Scheme Changes For 2017

It's that time of the year again where Discovery Health members get the opportunity to change their medical aid plan. As for all medical aids, be cautious when doing so. We suggest speaking to us or your healthcare broker first.

Our medical aid houseview is Discovery Health: Classic or Classic Delta Comprehensive/Saver/Core where the in-hospital treatment is paid up to 200% of the Discovery Health Rate. Any savings from the Classic Comprehensive Plan deviation should be saved for medical expenses. The current thinking is that GAP cover should be taken out to cater for additional expenses if one does use the Discovery Hospital Network. Silke Financial Services currently cannot offer this product; however, Discovery is in the process of launching gap cover. Once we have had the opportunity to review, will we provide feedback.

How has Discovery Health performed over the past year?

They are the biggest open medical scheme. Per Discovery Health, they have 54% of the market which translates into 2.7 million lives covered. The average age of their members is 33.9 which is great. Theoretically, the younger the membership, the healthier the individual, the less they cost the scheme. Law requires medical schemes to maintain a solvency ratio of 25%. Discovery Health's solvency ratio is standing at 25.98%. Discovery Health say they have R12.9 billion in reserves. Their credit rating is AA+. There will be a 9.9% increase across all plans except for the Coastal Core plan with an increase of 14.9%, and the Coastal Saver plan with an increase of 7.8% but with a corresponding reduction in savings from 25% to 20% of contributions. Executive and Comprehensive plans have seen an 11.9% increase in contributions. All benefit limits, co-payments and deductibles have generally been increased by 9.9%.

For more information please refer to the following useful links:

• Guide to selecting your Discovery Health Medical Scheme Plan [PDF]
• Discovery Health Plan Comparison (The Delta Hospital Network Series have deductibles for planned procedures if members do not use the specified hospital network. Co-payments for not using the Delta network are applicable. NB: Please familiarise yourself with the Delta hospital network.) [PDF]
• View the Discovery Health video library for videos covering health plans for 2017

The deadline date for the Year-End Option changes on Discovery Health is 08 December 2015. Please send any Discovery Health changes or updates to us: engage@silke.co.za before 8 December 2015.

Regards,

Shane Thom, CFP^® GTP(SA)™
Managing Partner: Integrated Wealthcare Advisor