Discovery announces medical aid increases for 2026 – with a big catch
Discovery is set to increase medical aid premiums by up to 7.9% in 2026, but increases will only kick in from April 2026.
The weighted average increase for members will be 7.2%, while members of the KeyCare, Executive, Comprehensive and Coastal plans will see 7.9% increases in 2026.
Premiums for all other plans will increase by 6.9%, representing about two-thirds of all beneficiaries. Premiums for the Active Smart plan will remain unchanged at 0%.
Although the weighted increases of 7.2% are far above the current inflation rate of 3.3%, members will save some funds due to the delay of the implementation to April.
In summary, Discovery Health Medical Scheme members can expect the following increases:
- Executive – 7.9%
- Comprehensive – 7.9%
- Coastal – 7.9%
- KeyCare – 7.9%
- Priority – 6.9%
- Saver – 6.9%
- Core – 6.9%
- Active Smart Plan – 0%
All contribution increases are deferred from 1 January 2026 to 1 April 2026, saving members R1.5 billion, or around R1,100 per membership, the group said.
Discovery Health Medical Scheme said that a family of four on Classic Comprehensive will save more than R5,100 thanks to the postponement of increases. A family of three on Classic Saver will save over R2,000.
It said the deferral is possible thanks to the Scheme’s solvency position, which is projected to remain well-above 30% – above the minimum required of 25%.
This strength is driven by the better-than-expected claims experience and returns on Scheme Investments.
“This strategic use of excess solvency enables the Scheme to offer members meaningful financial relief without compromising its long-term sustainability,” said Ron Whelan, CEO of Discovery Health.
“Contribution increases remain accurately priced, in line with medical inflation, ensuring affordability and long-term stability.”
However, Discovery noted that medical inflation continues to outpace CPI, which is driven by healthcare utilisation due to ageing populations, and the increasing availability of and cost of advanced medical treatments.
Although the cost of healthcare services is expected to rise in line with CPI, utilisation of healthcare services is expected to drive an additional 3% to 4% increase in claims paid by the scheme.
“Medical inflation is a global challenge affecting all health systems – not just medical schemes in South Africa,” said Whelan.
On top of the fee increases, the scheme also introduced two new significant enhancements for 2026.
- Smart Saver Series – A new range of plans for young families’ health and financial needs. Within the new Smart Saver series, two plan options are available: Classic Smart Saver and Essential Smart Saver.
- Enhanced Personal Health Fund Benefits – Adult members accumulate funds into their Personal Health Fund by completing ‘next best actions’ in their Personal Health Pathways, which can be used to finance day-to-day benefits.
Not the only one
Discovery is not the only medical scheme to introduce above-inflation increases for medical aid in South Africa.
The second largest scheme in the country, Bonitas, announced a weighted average increase of 8.8%. Medshield announced a weighted average increase of 7.5%.
Bestmed has announced the implementation of an average weighted contribution increase of 6.8%.
“Healthcare inflation remains one of the biggest challenges facing households,” said Leo Dlamini, CEO and Principal Officer of Bestmed.
With the exception of Bestmed, which just hits the upper-end of the range, the average contribution increases from the major medical aids come in much higher than the recommendations by the Council of Medical Schemes (CMS).
The CMS published a circular this month recommending that medical schemes limit their contribution increases for 2026 to inflation.
Broadly, the CMS recommended that medical schemes limit their 2026 price hikes to 3.3% plus “reasonable utilisation estimates”.
In previous years, the council said its historical data points to “reasonable utilisation estimates”, adding around 3.5 percentage points to the hikes.
In its latest circular, the council noted that private medical inflation usually exceeds CPI by 2 to 3 percentage points.
Thus, the “reasonable” increase for 2026 would be anywhere between 5.4% and 6.8%. Only Bestmed barely stuck to this guideline.
The CMS has urged medical aids to keep as close to inflation as possible, noting that contribution increases outpaced inflation by 7.1 percentage points in 2025.
Medical aid contribution increases in 2025 averaged 10.1%, against inflation of 3%. This was up from an already high 10.3% average increase in 2024.
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