Why More South Africans Are Dropping Discovery’s Premium Medical Aid Plans

From aging members to shifting affordability: what’s behind Discovery’s shake-up?

It’s official more South Africans are rethinking their medical aid options, and even Discovery Health Medical Scheme, the country’s biggest player, isn’t immune.

In 2024, over half of Discovery’s core plans saw a drop in membership. And some of the biggest declines were on the very plans that were once considered flagship offerings.

So, what’s going on behind the numbers?

Premium Plans Losing Their Spark

If you’ve ever held a Classic Comprehensive plan Discovery’s high-end option you probably know it’s long been seen as the gold standard of cover. But not anymore. That plan alone lost 7% of its members last year, and it’s down a whopping 26% since 2020.

The picture is similar for KeyCare Plus, a plan aimed at lower-income members, which dropped by 11%. In total, nine out of 16 core Discovery plans saw year-on-year membership declines in 2024.

Behind these numbers is a much bigger challenge for Discovery: South Africa’s medical aid landscape is stagnating. And Discovery’s members are aging.

The average age of a member on Discovery is now 37.6, a climb of over five years in just 16 years. That’s a problem for any scheme relying on young, healthy members to balance out claims from older ones.

Young Professionals? Discovery’s Betting On You

Discovery isn’t just watching this trend unfold,  it’s actively trying to reverse it. The company has rolled out newer, more affordable “Smart” plans targeting young professionals, such as the recently launched Active Smart Plan at R1,350 per month.

The bet is simple: young people are open to joining a scheme, but only if it doesn’t swallow 10% of their paycheck. Research from Discovery shows that for those aged 20–29, medical aid eats up around 7% of income. That’s way above the 4% that older adults typically spend.

Discovery’s solution? Offer plans that hit the 5% sweet spot.

And it’s working, at least in part. The Classic Smart and Essential Smart plans, which bundle decent benefits with tighter hospital networks — have grown fast. Essential Smart alone jumped 26% in 2024. Together, they now each boast about 72,000 members, making them more popular than most of Discovery’s traditional options.

How Affordable Is ‘Affordable’?

For all the cost-cutting talk, Discovery still sits at the upper end of the market. But they insist that compared to competitors, they’re offering better value.

According to the scheme, their contributions in 2025 are 12.7% lower on average than those of the next seven largest open medical schemes in the country. That’s a big claim and one the Council for Medical Schemes hasn’t independently verified yet for 2023.

On day-to-day benefits, Discovery says its prices are even more competitive: 8.2% lower for comprehensive cover, and 16.5% lower for basic plans.

Claims Are Climbing Again

Like the rest of the industry, Discovery is dealing with rising healthcare usage as the country returns to post-pandemic normalcy.

Claims in 2024 were up 7.5%, with cardiovascular conditions topping the list of expensive disease episodes. Meanwhile, the cost of treating cancer (tumours) has surpassed musculoskeletal issues a sign of both rising incidence and broader access to benefits.

The scheme has been paying out generously. In 2022, Discovery settled 96% of in-hospital claims, compared to 91% across other open schemes. But increased utilisation could put pressure on pricing in the near future.

Where Do We Go From Here?

Discovery Health might still be the giant in South Africa’s private healthcare sector, but its latest numbers are a clear signal: consumers are more price-sensitive, more informed, and more demanding than ever before.

The scheme’s strategic pivot toward younger, urban professionals shows awareness of this shift. But whether that’s enough to offset ageing members and declining interest in premium options is another question.

One thing is certain: in a country where every rand counts, and healthcare inflation outpaces income growth, even big brands like Discovery will need to work harder to stay relevant and affordable.

If you’re under 35 and thinking about joining a medical aid, don’t overlook newer Smart plans. They’re designed with younger South Africans in mind and could be the sweet spot between price and peace of mind.

{Source: Moneyweb}

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