Health insurance shouldn’t be a luxury but it can be difficult to include in your budget when health insurance premiums increase. Health insurance providers are often questioned about the rising costs of premiums and why this happens. There are several factors to consider when it comes to the cost of health insurance premiums. Bloom Financial Services discusses the main factors affecting health insurance premiums so you can understand why these increase over time.
Reasons why health insurance premiums increase
Why do health insurance premiums increase each year? These are the main contributing factors:
- Inflation. This refers to the rate at which the cost of living rises. Unfortunately, this doesn’t remain static so health insurance premiums have to increase. Statistics South Africa recently published its latest Consumer Price Index, which shows that the annual inflation in South Africa sits at 5.9%
- Medical inflation. The costs of medical inflation will vary from year to year. The price increase reflects medical advancement in healthcare facilities and resources, as well as medical professionals’ rates and insurance costs.
Remember that your health insurance premiums will vary according to which plan you choose. There are also a number of factors that are considered when an insurer calculates your monthly insurance premiums. For the full list, take a look at Factors affecting your health insurance premiums.
5 Tips that can help reduce your health insurance premiums
1.Compare health insurance plans. Choose your policy wisely. There are a lot of health insurance options from which to choose so it’s advisable to take a look at the benefits of each relative to your medical needs and budget. Bloom and Momentum Health4Me offer three types of health insurance packages. These are:
- Health4Me Bronze: a basic, entry-level plan that is the most affordable at just R517 for the principal member each month.
- Health4Me Silver: a balanced, mid-level plan that offers competitively-priced benefits at R554 for the main member each month.
- Health4Me Gold: the most comprehensive health care plan that provides a range of benefits at R598 for the main member each month.
2. Purchase top-up plans to improve your cover. A top-up plan, like gap cover, is insurance that goes above your regular health insurance and can prove to be a great saver in the long run. Bloom Gap cover ensures you’re covered for those medical expense shortfalls. This is because gap cover works in conjunction with your health insurance to provide you with better financial support when you need it.
3. Be selective with the benefits you choose. The health insurance premium for which you are charged is proportional to the benefits cover you select. The more cover you have, the higher the premiums. So, it’s advisable to only select the benefits you really need. This is called the building block approach, which is a model used by health insurance plans to assist members in keeping their health insurance premiums lower than a medical aid plan.
4. Lead a healthy lifestyle. Many illnesses and conditions are preventable if you’re making smart lifestyle choices. Eat a nutritious diet and exercise regularly. This will decrease your risk of developing conditions like high blood pressure.
How much does affordable health insurance cost?
Bloom Financial Services offers a range of affordable health insurance plans. These include the Momentum Health4Me Gold, Silver and Bronze options. To qualify for health insurance cover, you need to be over the age of 18 years and earn a minimum of R8,000 per month and less than R30,000.
Get health insurance cover at a cost-effective price
Speak to a Bloom consultant about the health insurance premiums you can afford. There are different health insurance plans available with Momentum Health4Me. Bloom Financial Services is committed to providing top-quality healthcare services that are affordable for South Africans. Discover the right health insurance plan that suits your budget by contacting our offices for more information.
Medical Content Disclaimer
You understand and acknowledge that all users of the Bloom Financial Services website are responsible for their own medical care, treatment, and oversight. All content provided on the website, is for informational purposes only and does not constitute medical advice. Neither is it intended to be a substitute for an independent professional medical opinion, judgement, diagnosis or treatment.