Another Squeeze: Medical Aid Levies Set to Rise, Adding to Above-Inflation Hikes

Medical aid members are about to feel another financial squeeze.

On 20 February 2026, the Council for Medical Schemes (CMS) confirmed the imposition of levies on medical schemes for the 2026/2027 financial year.

The levies will ultimately have a direct cost on the schemesand that cost is almost always passed on to members through higher contributions.

The Numbers

The mandatory levy for each registered medical scheme is R51.49 per primary member, effective from 1 April 2026.

It must be paid in two instalments:

• By 30 April

• By 30 June

The levy is calculated based on the number of principal members submitted to the Registrar by the medical scheme.

If a transfer of principal members is in process and not finalised by 31 December 2025, the transferor must pay the levy.

The Impact

Rudolph Ackermann, CEO of Manage All Medical Scheme Brokers, said the levy will primarily affect members through increased costs of maintaining cover.

“The levies, which are used to fund the CMS and other regulatory functions, are ultimately factored into the scheme’s overall costs, which are then passed on to members through higher contributions or reduced benefits.”

Some schemes may choose to reduce benefits or limit access to certain services to offset the impact, resulting in higher out-of-pocket costs for members.

The Broader Context

Finance Minister Enoch Godongwana’s 2026 Budget provided some relief by giving an CPI-linked increase to the medical aid tax credit.

But medical aid contributions are currently rising by CPI plus 4 to 5 percentage points, completely offsetting any benefit.

While tax credits are still being implemented and even increased, the National Health Insurance (NHI) Act codifies their eventual removal to fund the NHI.

The Trade-Off

Ackermann acknowledged that while the levy increases costs, it plays a vital role in ensuring medical schemes remain sustainable in the long term.

“By funding the regulatory oversight and other functions, the levy helps to maintain the integrity of the scheme and protect members’ interests.”

Transparency Required

The CMS emphasises the importance of transparency between medical schemes and their members.

Schemes should not only notify members of levy changes but also explain the reasons for contribution increases and ensure members are fully aware of their rights and options.

The Bottom Line

Medical aid is getting more expensiveagain.

Levies are rising. Contributions are outpacing inflation. Tax credits are barely keeping up. And the NHI looms in the background.

For members, the message is simple: brace for impact. Your medical aid is about to cost more.

{Source: BusinessTech}

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