Medical aid costs set to outpace inflation again
Katlego Sekhu
South Africans on medical aid could be facing another tough year.
Despite the Council for Medical Schemes urging that 2026 contribution increases be kept in line with inflation, past trends suggest otherwise. In 2025 alone, medical aid costs exceeded inflation by 7.1 percentage points, and experts warn the pattern is unlikely to change.
Lesego Kgampe, Executive Director of Corporate Advisory Services at ASI Financial Services, recently joined Kaya Biz to explain why medical aid premiums continue to rise faster than inflation, what factors drive the affordability crunch, and the impact on households and employers.
Kgampe pointed out that medical aid inflation is fuelled by chronic medication, an ageing member base, and the adoption of advanced medical technology. “Over the last five years, spending on medication for diabetes and cancer has grown into double digits,” he said.
He also noted that the cost of medical consultations is now 8 percent higher than last year.
“Indicators show that medical schemes are preparing for increases of between 8 and 12 percent in 2026, depending on the scheme’s claim profile and reserves. Average contributions across schemes will be about 9.5 percent,” Kgampe explained.
He painted a stark picture of rising costs over the last three years.
“The scary data is that a family of four, about three years ago, was paying around R6,500 in contributions for a mid-tier option. You are currently paying about R8,000 for the same option.”
Kgampe warned that affordability remains the biggest challenge. “The biggest concern we’re seeing is that when costs rise, people are cancelling their medical aid,” he added.
To hear the full discussion, listen to the Kaya Biz podcast.
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