Gap cover is something that has taken South Africa by storm. It works, and it works well. So why is Government against Gap cover?
They tried to make medical gap cover illegal.
However, they couldn’t get it right. Because of the backlash from the insurance industry, they had to amend their proposal.
Gap cover will continue, but it won’t be quite the same. Nevertheless, it’s still a great product that helps you in times of financial stress.
Government against Gap cover – Why did They get Involved anyway?
The government started targeting gap cover because it offers a choice against high costs.
Most of us look to their medical aid as a way to cover costly hospital bills.
But there is still a gap when it comes to cover because your medical aid has set rates that they pay out. Doctors and hospitals often charge more than these rates.
Gap cover closes the gap at a reasonable price. Now, instead of buying a more expensive plan, you can take out gap cover.
Okay, still Not seeing Why the Government got Involved?
According to the powers that be, they want to provide medical care for all the citizens of the country. Especially those in the lowest income brackets.
They propose a National Health Insurance to replace private medical aid. Everyone working will be obliged to pay towards this scheme, and the money will go to the government.
The idea is that the poor get subsidised by the rest of us. It is supposedly going to be good for everyone.
However, the fact that a lot more money now flows into the governments’ accounts is not meant to have occurred to anyone.
Essentially, it is yet another way that the government is forcing those who earn their money to pay for those who are indigent. And if it makes a few politicians rich at the same time, all the better.
Government against Gap cover and Gap cover Gets in the Way
- If people have gap cover, they pay less for their medical aid, and that doesn’t suit the government.
- Also, you only need one policy for the whole family, and that means even less money coming in.
- Because of gap cover, you are not forced to rely on state hospitals.
- South Africa is currently the only country to offer gap insurance.
- The insurance is cost-effective and works.
- And, best of all, the industry is not controlled by the government.
A trial Healthcare programme Is being Tested
The government has already launched the NHI on a trial basis in some areas to test the waters. And the results are not great. Service delivery is, as expected, almost non-existent and supplies run out very quickly.
The UK has the same system, and it hasn’t been a great success there either.
Does the government really have the best interests of the people at heart? Gap cover does.
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All info was correct at time of publishing