Layla Hadid
Discovery, South Africa’s largest medical aid provider, has unveiled plans to implement a notable increase in membership contributions starting in 2025. The company revealed that monthly fees will rise by a weighted average of 9.3% across all its plans.
The increase will vary depending on the specific plan, with members seeing contributions increase between 7.4% and 10.9%. Despite the broad range of adjustments, Discovery has reassured its members that approximately half of them will face an increase of 8.4% or less.
These proposed changes are not yet final, as Discovery’s planned increases and benefits for 2025 have been submitted to the Council for Medical Schemes (CMS) for approval. Once approved by the CMS, the updated pricing and benefits will take effect from 1 January 2025.
It is important to note that Discovery’s proposed price hikes exceed the CMS’s recommendations for the upcoming year.
In August 2024, the CMS released its pricing guidelines for 2025, urging medical aid providers to keep increases in line with the Consumer Price Index (CPI) as much as possible. The council suggested a 4.4% increase along with what it described as “reasonable utilisation estimates.”
While the CMS aims to keep increases tied closely to CPI, the reality of private medical inflation in South Africa tends to push costs higher. Private healthcare costs usually outpace CPI by around 2% to 3%. This means that a “reasonable” increase for 2025, according to the CMS, would be between 6.4% and 7.7%.
Discovery’s proposed average increase of 9.3%, however, is considerably above these guidelines.
In addition to the price adjustments, Discovery will be introducing a new plan in 2025. This new option, called Active Smart, is part of the company’s Smart series of entry-level medical aid plans. It will cost R1 350 per month and is designed specifically to cater to the needs of young professionals who are just starting their careers.
According to Discovery,
“Active Smart is designed around the unique needs of young professionals starting their careers.”
Much like the other Smart plans in Discovery’s portfolio—Classic, Essential, and Essential Dynamic—the Active Smart plan does not include a medical savings account, making it a more streamlined and affordable option for those looking to enter the market.
Another notable development for 2025 is Discovery’s introduction of a new day-to-day benefits system for all members of the Discovery Health Medical Scheme (DHMS). Members will now have access to up to R10 000 in risk-funded benefits each year to cover day-to-day medical expenses.
Discovery explained that the amount of these benefits will depend on the plan and family composition, and the funds are accumulated by completing health actions that are part of the member’s Personal Health Pathway.
The company further elaborated that:
“Personal Health Pathways offers each member a precise and personalised health journey based on their unique healthcare needs, dynamically adapting as the member’s health status evolves. Members are rewarded for completing personalised health and exercise actions and developing sustained healthy habits over time.”
This system will allow members to earn health benefits by actively engaging with their recommended health actions, which aims to promote healthier habits while providing additional financial support for healthcare needs.
While Discovery’s decision to raise prices may come as a blow to many members, particularly those expecting increases closer to the CMS guidelines, the company has also introduced new offerings that target specific groups. The introduction of the Active Smart plan appears to be an effort to attract younger members, while the Personal Health Fund encourages members to take a more proactive role in managing their health, with tangible rewards.
Nonetheless, with medical inflation continuing to rise at a rate faster than general inflation, the burden of healthcare costs remains a point of concern for many South Africans. It will be critical to see how other medical aid providers respond in terms of their pricing for 2025, and whether Discovery’s proposed increases receive the necessary CMS approval.
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