What will happen to your Gap Cover costs in 2017?

What will happen to your Gap Cover costs in 2017?

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New regulations on gap cover products came into effect on the 1st of April 2017.

An overall annual policy limit of R 150 000 per person per year will apply for new policies taken from 1 April 2017 onwards.

“The Demarcation Regulations state that clients on existing policies with a cover start date prior to 1 April 2017 may continue with their existing cover until 31 December 2017. New policies with a cover start date of 1 April 2017 and thereafter must join a policy that aligns to the Demarcation Regulations.”

“Until 1 January 2018, the cover for existing gap cover policy holders will be unaffected.”

Premiums will not be reduced as a case of the new limitation.

According to the Health Minister, the purpose of the change is to try and prevent doctors from charging high tariffs as they currently have no reason to compete on either price or quality.

What does this mean for gap cover clients?

The intention is to prevent doctors taking advantage of over extensive cover, which means you should be paying less. However, there have been instances where, depending on your plan, you exceed the limits that will be introduced with the regulation.

If you would like more clarity on these regulatory changes, please contact your Verso Health, healthcare consultant.

Call us on 021 943 5302 or email us at [email protected]

Visit our website today at www.verso.co.za

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References:

  • www.stratumbenefits.co.za
  • businesstech.co.za/news/business/149569/two-massive-medical-aid-changes-coming-in-2017-that-you-need-to-know-about

 

The content in this article is wholly owned by the Verso Group of Companies. Companies in the Verso Group are authorised Financial Services Providers.

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