It’s that time of year again, when South African medical schemes have announced their annual member contribution increases for 2024. The weighted average increases vary among schemes – for example, Bonitas has increased by 6.9%, Discovery by 7.5%, Momentum by 9.6% and Fedhealth by 10.8%. But while on paper it may seem that the smallest increase means the better medical aid option, this isn’t the whole story.
Yatt says that while Fedhealth’s average weighted contributions increase for 2024 is on the upper end compared to other medical schemes, they have not reduced benefits or members’ savings in any way. Other schemes, in comparison, have reduced day-to-day savings to compensate for a smaller contribution increase – which means members could run out of savings far earlier in the year than before.
“What’s most important is that your medical aid scheme stays financially sustainable so that it’s able to meet your medical costs now and well into the future,” comments Yatt. For this reason, the CMS stipulates a solvency ratio of at least 25% for all South African medical schemes.