If you thought your medical scheme would offer any relief from the price hikes affecting fuel and food, you’d be mistaken. Discovery Health Medical Scheme has announced a contribution increase of 7.4% to 8.9% for 2027.
According to Discovery, the price hike aligns with medical inflation, with two out of every three beneficiaries getting an increase below 8%.
Medical inflation is driven by both the cost of healthcare services and the supply and demand for care.
Balancing prices
Dr Ron Whelan, CEO of Discovery Health, the medical scheme’s administrator and managed care provider, says the pricing aims to balance affordability with the long-term sustainability of members’ healthcare funding.
“Members need confidence not only in the value of their benefits today, but also in the stability of their contributions over time,” says Whelan.
He adds that the scheme’s focus is to avoid price shocks, protect benefits into the future and provide sustainable increases that remain materially below those seen across the broader medical scheme industry.
Healthcare costs continue to rise each year, reflecting rising input costs and the ongoing introduction of new treatments, medicines and technologies.
Members’ financial pressures
At the same time, demand for healthcare is growing as populations age and chronic disease becomes more prevalent, resulting in higher utilisation of healthcare services.
“Medical inflation is a challenge affecting health systems globally, not only medical schemes in South Africa,” says Whelan.
“What matters is how effectively a scheme manages those pressures.
“Discovery Health Medical Scheme has consistently contained contribution increases within a medical inflation corridor of CPI plus 3% to 4%, reflecting a disciplined approach to balancing affordability with long-term sustainability.
“We are acutely aware of the financial pressure facing South African households. Every rand matters, and healthcare is one of the expenses families are most concerned about.
“Our responsibility is not simply to pass rising healthcare costs on to members. Instead, we focus on removing as much cost and inefficiency from the healthcare system as possible before it reaches members’ monthly contributions, while continuing to protect access to quality healthcare and the value of their benefits.”
Here’s how the increase will hit your pocket:
Discovery Health Medical Scheme gross contribution increases for 2027 by benefit option: |
| Benefit option | 2027 increase |
KeyCare |
8.9% |
Active Smart |
7.4% |
Smart (excluding Active Smart) |
7.9% |
Smart Saver |
7.9% |
Core (excluding Coastal Core) |
7.9% |
Coastal Core |
8.9% |
Saver (excluding Coastal Saver) |
7.9% |
Coastal Saver |
8.4% |
Priority |
8.9% |
Comprehensive (including Classic Smart Comprehensive) |
8.9% |
Executive |
8.9% |
