Health insurance offers a means for employees who cannot afford medical care to get access to the primary healthcare they need.

Health insurance: a win-win natural extension of employee benefits

The cost-of-living crunch is hitting lower- and middle-income earners particularly hard, forcing many South Africans to neglect their basic healthcare needs to save money. But failing to have routine checks done, or getting fairly minor ailments treated early, can result in devastating and costly illness in the longer term.

For employers, workers suffering from deteriorating vision, toothache, colds and flu, or who are worrying about a sick child, simply can’t perform at their best, or at all. Employees relying on the public healthcare system often need to take extended time off to queue to be seen by a healthcare practitioner. They also have to visit facilities that are understaffed and under-resourced, which means they are not always getting the best possible care.

Health insurance offers a win-win solution for both employees and employers. Designed to cover primary healthcare needs such as GP visits, basic dental care and optometry, health insurance is a relatively low-cost insurance.

Health insurance is not the same as medical aid. Medical aid schemes are governed by the Medical Schemes Act and are obliged to cover a comprehensive range of treatments with prescribed minimum benefits. This often results in higher costs. As a result, only around 17% of South Africans can afford medical aid membership.?

In contrast, health insurance is governed by the Long-term Insurance Act and helps fill the gap in healthcare accessibility by making primary healthcare services affordable for more people, which is crucial for healthier societies. In fact, the World Health Organisation says primary care can deliver 90% of essential health services people need throughout their lives.

Good health insurance products cover out-of-hospital consultations and treatment, acute and chronic medication, certain dentistry and optometry, and even include emergency medical services and hospitalisation benefits – giving employees peace of mind that they can afford to seek medical treatment when they need it.

By subsidising health insurance for employees, employers gain more than just productivity benefits – they build a more compelling, complete benefits package that generates loyalty and helps establish them as employers who care.

As a natural extension of our existing tried-and-tested employee benefits business, Old Mutual Health Solutions offers a range of affordable health insurance options designed for low-income workers, from as little as R260 for a principal insured person.

Reach out to us at Old Mutual Corporate to find out how to enhance your employee benefits portfolio with Old Mutual Health Solutions, underwritten and administered by GENRIC Insurance Company Limited.

For more information, email me on [email protected]