Finally, medical aid that young people can afford

By: Jeremy Yatt, Fedhealth Principal Officer

Jeremy Yatt

Fedhealth’s latest new development is the flexiFEDSavvy option. A game-changer for the industry, this hospital plan offers a young, fun and future-focused medical aid alternative for the movers and shakers of tomorrow, a.k.a. under-35 digital natives.

With annual inflation reaching a 3-year high in July 2022 (7.8%), budgeting for monthly essentials like groceries, transport and healthcare has become increasingly difficult – especially for younger people. What’s more is that our country has one of the highest youth unemployment rates in the world, which has worsened since the pandemic, with 4.8 million young South Africans now unemployed.

Not your average medical aid option

Says Jeremy Yatt, Fedhealth Principal Officer, “Up until now, young people just starting out have faced a challenge: they couldn’t afford to be without medical aid, but they couldn’t afford to pay for it either. This is where Fedhealth believes our flexiFEDSavvy option will make all the difference. It gives under-35 members, who belong to the right member profile, fully-fledged medical aid (not medical insurance) for under R1 000 per month.”

Who does flexiFEDSavvy suit?

First-time medical aid members just starting their first jobs who are on tight budgets, but still want high-quality private medical aid. Young people craving personalisation, customisation and affordability – those wanting something different from the medical aid than their elders or parents were used to.

Digital natives who are used to running their lives online. flexiFEDSavvy is fulfilled entirely through digital self-service platforms – with no paperwork or boring call centres. Like doing a workout, arranging a date or ordering groceries, this generation can now manage their healthcare digitally too.

Companies that employ junior staff will find this plan ideal for those just entering the workplace, as they can reduce monthly employee expenses while still ensuring a healthy and productive workforce.

Let’s talk benefits

In addition to being a hospital plan with unlimited virtual GP visits and three face-to-face consults at a network GP (paid from Risk), flexiFEDSavvy members can enjoy:

  • Unlimited private hospitalisation at an extensive hospital network up to PMB level of care
  • Unlimited cover with network specialists and GPs in-hospital
  • Seven days’ supply of take-home medication after being discharged from hospital
  • 30-day post-hospitalisation benefit, which provides unlimited cover from the hospital benefit for follow-up care after discharge for physiotherapy, basic radiology/pathology and occupational therapy
  • Unlimited trauma treatment in a casualty ward
  • Various screening and preventative benefits
  • Virtual mental wellness support
  • A female contraceptive benefit.

The flexibility to add day-to-day cover

Savvy members can also choose one of four ways to fund day-to-day savings (if they choose to):

  • They can use it as a hospital plan only and pay for day-to-day expenses out of their own pocket. This will cost only R965p/m in 2024 for a main member.
  • They can use it as a savings plan and receive R4 800 of annual savings at a contribution of R1 365p/m for a main member.
  • They can use it as a flexible savings plan with access to a generous amount of day-to-day savings, but they only pay for what they use.
  • Finally, members can use it as a hospital plan and take out Sanlam Primary Care* cover for R423 per month for individuals, and a discounted rate of R317 per month for corporates. Sanlam Primary Care covers a selection of great day-to-day benefits.

Peace of mind when life changes

Just like any flexiFED option, flexiFEDSavvy also allows members to upgrade any time of the year in case of a life-changing event. This means that young and healthy members definitely don’t need to overpay for medical aid that’s more comprehensive than what they need at the moment.

Marketing Savvy among the correct demographic is a MUST

It’s critically important that flexiFEDSavvy is only marketed towards the correct risk profile to keep it affordable. For every year of ageing on this option, there will inevitably be an approximate 2% increase in contributions, which will make the option unsustainable. As such, Fedhealth’s marketing efforts are focused on digital and social media channels such as TikTok and Instagram. We’re also launching the Republic of Savvy App – a value-added experience for Savvy members where they can play, unwind, learn and earn big rewards and prizes.

Two integrated products that complement Savvy

Fedhealth is committed to finding new ways to make medical aid affordable for all, and provide brokers with additional earning potential. As such, we’re introducing two new integrated products that can complement the Savvy option:

1. Fedhealth NexGen Gap cover

For the broker’s clients who fall perfectly in the Savvy market, but are weary of the ‘excess’ co-payment in case of planned hospital procedures at non-network hospitals, there’s Fedhealth NexGen Gap cover. This has been designed exclusively by Sanlam to complement Fedhealth’s Savvy (or Elect) option.

From just R64.90p/m for individual members and R109p/m for families, Fedhealth NexGen Gap cover will take care of the flexiFEDSavvy hospital co-payment, so members can visit any private hospital in the country. It also covers value-added benefits that are perfect for young and healthy clients. These value-added benefits complement some of Fedhealth’s other unique benefits, like MRI and CT scans, and casualty ward visits.

2. Sanlam Primary Care*

Young people are often most concerned with having hospital cover, that protects them if an accident or emergency strikes, but do like the idea of having some day-to-day benefits just in case they might need it.

Sanlam Primary Care provides precisely that, from only R423p/m for individual members and R317p/m for corporate members.

By combining a hospital plan with a much more affordable primary care insurance plan, young members will have fantastic private hospital cover with all the Fedhealth unique benefits and chronic medication cover, as well as access to visits to GPs, dentists, optometrists and specialists, and benefits for radiology, pathology and acute medication at primary healthcare insurance rates.

To provide your under-35 clients who are looking for smarter ways to make their money (and health) go further with flexible medical aid cover, visit fedhealth. co.za or speak to a Fedhealth Broker Consultant today.

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Sources:

South Africa’s medical schemes have a problem

https://www.statssa.gov.za/?p=15685/

https://www.statssa.gov.za/?p=15678

Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za