Lifestyle

Discovery announces price hikes for 2023 – here’s what you will be paying

Staff Writer

 ·22 Feb 2023

Discovery Health Medical Scheme (DHMS) has announced price hikes for 2023, with new contribution increases taking effect on 1 April.

Scheme members, including those on the Keycare, Smart, Core and Saver Plans, will see a 7.9% increase. Members on the Priority, Comprehensive and Executive plans will have a 9.9% increase.

After deferring price hikes for the first three months, Discovery members will now effectively pay 2023 contributions for only nine months of the year.

Dr Ryan Noach, the CEO of Discovery Health, said: “85% of DHMS members will experience a 7.9% increase in their contributions, while the remaining 15% of members will experience a 9.9% contribution increase.”

The weighted average contribution increase for 2023 for the Scheme will be 8.2%, he added.

In January, Discovery said that the adjustments would be decided on in careful alignment with medical inflation.

In real terms, taking into account the delayed increase in 2023, members will pay 6.2% more than December 2022 rates on average during 2023, the group said.

These are the prices from 1 April 2023 (for the main member):

* prices for 2022 KeyCare ranges

According to Noach, the difference in increases across plans takes into account the higher disease burden on the Priority, Comprehensive and Executive plans – reflected through higher hospital admissions, oncology claims and chronic illness costs.

Contribution increases for DHMS across the past three years have ensured that contributions remain in check with medical inflation, Discovery said.

Deferring increases is used as a ‘shock absorber’ to reduce the effective annual increases for members.

“This strategy allows the Scheme to maintain its long-term sustainability, avoid future price shocks and benefit cuts, and address affordability for members,” said the group.

Membership in the health scheme has grown by 47,500 beneficiaries since January 2021.

Prior to the announcement, Noach said that consumer price inflation and the overall outlook for healthcare use remained volatile.

New projects

On 13 February, Discovery Health announced its partnership with Clicks and Auto & General Insurance to bring a new health insurance product to consumers – Flexicare.

Flexicare provides unlimited consultations with GPs, medicine, dentistry, eye care, x-rays, flu vaccines, maternity care, health checks, blood tests, procedures in GP rooms, HIV care, and private ambulance services for a monthly fee of R435.

Discovery said that Flexicare is not a medical aid scheme but an insurance product that is not intended to substitute medical scheme membership.

Read: Discovery launches new affordable private health insurance package