
Global medical cost growth is cooling. Why isn’t South Africa’s?
Global medical cost growth is easing, but South Africa’s rate remains high – putting medical schemes under pressure to balance rising healthcare costs with affordability in 2027.

Global medical cost growth is easing, but South Africa’s rate remains high – putting medical schemes under pressure to balance rising healthcare costs with affordability in 2027.

The Council for Medical Schemes recommends capping 2026 contribution increases at 3.3% plus “reasonable utilisation estimates”, yet past trends show schemes often push far higher.

Three medical schemes fell below the 25% solvency threshold in 2023.

Medical inflation outpaces CPI because of unique pressures such as the rising costs of technology, chronic diseases, and private healthcare pricing.

Bestmed says that rand for rand its benefit options will remain competitive despite the proposed average increase of 12.75%.

With major medical schemes reporting average contribution hikes exceeding 9%, members face tough choices in an increasingly unaffordable healthcare landscape.