Momentum Health announced on 1 October that contributions to its medical aid scheme will rise by an average of 7.9% in 2027. The statement was published on the businesstech website. Momentum is the third-largest open scheme in South Africa, covering more than 285 000 beneficiaries.
The Council for Medical Schemes (CMS) has recommended an anchor increase of 3.8% for 2027, linked to the Consumer Price Index. Historical data suggest a “reasonable” rise of between 5.8% and 7.3%. Momentum’s 7.9% figure therefore sits above the CMS anchor and the historical range, but below the industry-wide weighted assumption of 8.1% cited by the CMS.
The scheme points to a contracting market, the total private medical aid market fell by 3% between 2019 and 2024, and an ageing member base, with the average age moving from 35 to 37 years. Fewer young South Africans are joining, which puts pressure on the risk pool and the affordability of cover.
Damian McHugh, chief medical officer of Momentum Health, said the increase reflects rising delivery costs and the need to preserve meaningful benefits. He also outlined three benefit changes for 2027: higher specialist benefit limits, the replacement of under-used COVID-19 screening benefits with an over-the-counter pharmacy medicine benefit, and the introduction of a third tier for general practitioner (GP) visits.
For small-to-medium enterprises that provide medical aid as part of employee remuneration, the higher contribution could raise payroll costs at a time when wage growth is already constrained by high inflation. The added benefit tiers may offset some of the cost pressure, but the net effect will depend on how members utilise the new GP and specialist limits.
Global advisory firm WTW projects medical aid costs to rise by 10.3% worldwide in 2026 and by 11.3% in the Middle East and Africa region. Those forecasts, based on a survey of 91 countries, place Momentum’s 7.9% increase within the lower end of international expectations, according to the company’s statement.
The Board of Healthcare Funders (BHF) has warned that the CMS does not define “reasonable utilisation”, which could lead to unrealistic expectations for schemes. Momentum’s claim that the increase balances affordability, innovation and cover reflects the tension between rising health-care costs and the need to keep premiums within reach of members.
What remains unclear is how the higher contribution will affect enrolment numbers in the coming years and whether other schemes will follow a similar pricing path. The sector will likely watch the impact on member retention and on the broader debate about the sustainability of private health-care financing in South Africa.
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