Members can expect to pay up to 11% more ….
Total monthly contributions for plans in the Discovery Health Medical Scheme (DHMS) will increase by between 8.88% and 10.96% for main members from January.
According to a pricing document made available to brokers, the weighted average increase is 9.5%. This takes into account contributions for main members, adults and children. DHMS generally shares price changes publicly in October/November.
Main member monthly contribution
(per salary range where applicable) |
|||
Plan | 2019 | 2020 | Increase |
Executive Plan | R6 541 | R7 257 | 10.95% |
Classic Comprehensive | R5 368 | R5 954 | 10.92% |
Classic Delta Comprehensive | R4 834 | R5 362 | 10.92% |
Essential Comprehensive | R4 509 | R5 003 | 10.96% |
Essential Delta Comprehensive | R4 062 | R4 507 | 10.96% |
Classic Smart Comprehensive | – | R4 327 | – |
Classic Priority | R3 501 | R3 814 | 8.94% |
Essential Priority | R3 010 | R3 278 | 8.9% |
Classic Saver | R3 021 | R3 290 | 8.9% |
Classic Delta Saver | R2 412 | R2 628 | 8.96% |
Essential Saver | R2 400 | R2 615 | 8.96% |
Essential Delta Saver | R1 915 | R2 085 | 8.88% |
Coastal Saver | R2 373 | R2 608 | 9.9% |
Classic Smart | R1 794 | R1 954 | 8.92% |
Essential Smart | R1 285 | R1 400 | 8.95% |
Classic Core | R2 248 | R2 449 | 8.94% |
Classic Delta Core | R1 799 | R1 960 | 8.95% |
Essential Core | R1 931 | R2 104 | 8.96% |
Essential Delta Core | R1 543 | R1 681 | 8.94% |
Coastal Core | R1 770 | R1 946 | 9.94% |
KeyCare Plus R0 – R8 550 | R1 088 | R1 207 | 10.94% |
KeyCare Plus R8 551 – R13 800 | R1 523 | R1 659 | 8.93% |
KeyCare Plus R13 801+ | R2 249 | R2 450 | 8.94% |
KeyCare Core R0 – R8 550 | R871 | R949 | 8.96% |
KeyCare Core R8 551 – R13 800 | R1 086 | R1 183 | 8.93% |
KeyCare Core R13 801+ | R1 661 | R1 809 | 8.91% |
KeyCare Start R0 – R9 150 | R839 | R914 | 8.94% |
KeyCare Start R9 151 – R13 800 | R1 412 | R1 538 | 8.92% |
KeyCare Start R13 801+ | R2 198 | R2 394 | 8.92% |
The detailed contributions document for 2020 is available here.
Last year, DHMS attempted to consolidate the income bands for its entry-level KeyCare plans. On KeyCare Core and KeyCare Plus, it removed the middle income bracket, and on KeyCare Start, it consolidated the lower two brackets. This meant increases of between 20% and 47% for some members. It reversed the plan to consolidate these after a strong backlash. The same brackets as 2019 remain in force next year.
Given DHMS’s position in the market – it held 56.6% market share of members in September 2018, according to the Council for Medical Schemes – these price changes are far-reaching. It nonetheless continues to grow. In 2018, it added a net 41 193 members, versus a combined 9 048 decline for the next seven largest schemes (Bonitas, Momentum Health, Medihelp, BestMed, Medshield, Fedhealth, and Sizwe).
According to its annual results presentation, medical inflation from July 2018 to end-June 2019 was 10.6%. Over the past decade, this has been 10.9%, with both supply and demand-side factors contributing to the rate which is more than double the Consumer Price Index (CPI).
Source: Discovery Health Medical Scheme annual results presentation
Because of its size and overall population dynamics, the average age of its member is trending up over time.
Source: Discovery Health Medical Scheme annual results presentation
As members get older, there is an increase in claims. Higher-risk members also drive up demand-side inflation.