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Discovery Health Medical Scheme has announced a "weighted" average increase of 7.5% in member contributions across all benefit plans from January 2024.
CEO, Ryan Noach, said in a statement that DHMS continues to maintain a strong financial position with healthy solvency levels heading into 2024.
He said during 2023, the Scheme has offered exceptional value to its members through higher levels of cover at more affordable price points than comparable medical schemes.
"While the long-term sustainability of DHMS is paramount, we remain extremely sensitive to the economic environment and affordability pressures that Scheme members are currently facing," he said.
"We are keenly aware of the far-reaching impacts of increasing inflation, high interest rates, and low GDP growth on households and businesses in our country. With this in mind, we strive to maximise value for members of the Scheme whilst maintaining the long-term sustainability of the medical scheme," he said.
Noach said each year, healthcare claims increase by medical inflation, which remains a function of increases in healthcare tariffs and changes in healthcare consumption. "In almost all countries across the globe, medical inflation runs at a premium to consumer price inflation, typically 3 to 4% higher," he added.
"The contribution increases for 2024 are based on medical inflation and vary by plan to allow for the unique changes in healthcare utilisation on the different plan options," adds Noach.
While DHMS members will experience a weighted average increase of 7.5% in gross contributions from 1 January 2024, contribution increases range between 3% and 12.9% depending on plan choice.
"Also, 39% of members will experience an increase of less than 4% in their gross contributions, and a further 34% of members will experience an increase between 5% and 10%. Effectively, 73% of members experience an increase of less than 10%," Noach said.
