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South Africans with medical aid are in for a nasty shock
South Africans with medical aid face significantly higher healthcare costs from January 2027, with major medical schemes increasing contributions by between about 7% and 9% – well above the affordability benchmark recommended by the Council for Medical Schemes (CMS).
According to BusinessTech, the increases could consume a substantial portion of salary adjustments next year.
The report cited calculations by wealth managers Efficient Wealth, using a household earning R30 000 a month after tax and paying R6 000 in medical aid contributions. If that household receives a 4.1% salary increase, equivalent to about R1 230 extra a month, an 8% medical aid increase would add R480 to its monthly contribution.
This would effectively consume about 40% of the household’s additional income.
‘A lower headline number can, therefore, offer little relief when income is struggling to keep pace,’ Efficient Wealth said.
Major open medical schemes
The country’s major open medical schemes have announced increases ranging from 7.35% to 8.7%. Bonitas is raising contributions by an average 8.7%, followed by Discovery Health Medical Scheme at 8.2%, Momentum Medical Scheme at 7.9%, Medihelp at 7.5% and Bestmed at 7.35%.
Discovery’s own 2027 contribution information confirms that increases will range from 7.4% to 8.9%, depending on the plan, with a weighted average increase of 8.2%.
The increases are considerably higher than the 3.8% benchmark recommended by the CMS for 2027.
IOL reported that the regulator had warned about the widening gap between medical scheme increases and consumer inflation.
‘The widening gap between medical scheme annual contribution increases and consumer inflation places a significant financial burden on households, particularly in an environment where salary increases are unlikely to keep pace with inflation,’ the CMS said.
Private healthcare inflation
The regulator has acknowledged that private healthcare inflation generally runs two to three percentage points above consumer inflation, but said schemes seeking increases above its benchmark must provide financial and actuarial justification.
The pressure is also being driven by rising healthcare costs. The Board of Healthcare Funders coverage by EWN reported that medical schemes paid more than R259 billion in healthcare benefits in 2024, up from about R218 billion in 2022.
The Board of Healthcare Funders has called for structural reforms to bring costs down, including collective negotiations between medical schemes and healthcare providers.
‘We have written to the Registrar calling for structural reforms to lower healthcare costs and make lower medical scheme contribution increases achievable,’ BHF managing director Katlego Mothudi said.
Higher contributions
The increases come as South African households are already under pressure from higher living costs and declining purchasing power. BusinessTech reported that average nominal net salaries stood at R21 689 a month in September 2026, but real salaries were 2.6% lower than a year earlier.
For medical aid members, the higher contributions mean households will need to review their cover and budgets before the new rates take effect in January.
The IOL noted that an 8% increase on a R3 000 monthly contribution would add R240 a month, or R2 880 over a year.
Members are therefore being urged to compare their existing plans, contribution increases and benefits before committing to their 2027 medical aid options.
Featured Image: Mateo Hernandez Reyes / Unsplash
