In South Africa, an increasing number of young adults are opting out of medical aid due to financial pressures and the belief that they don’t need it while they are healthy. Young adults should have medical aid from early on.
However, medical aid schemes warn that this trend is placing additional strain on the country’s healthcare system and driving up medical costs. More importantly, not having medical aid can leave young South Africans financially vulnerable in the face of unexpected medical emergencies.
The Rising Cost of Medical Aid and the Impact of an Ageing Membership
Recent data from Discovery Health Medical Scheme (DHMS), South Africa’s largest open medical aid, highlights a concerning trend: the average age of its members has increased from 32.3 years in 2008 to almost 38 years in 2024. Simultaneously, the percentage of members with chronic illnesses has more than doubled, reaching almost 32% in 2024.
Adrian Gore, CEO of Discovery, has emphasized that this shift is largely due to young people delaying or canceling their medical aid memberships. This, in turn, raises the age profile of medical schemes, placing a heavier financial burden on them due to an increasing number of chronic illness claims. As a result, medical aid premiums are rising at a rate higher than inflation, with annual medical inflation averaging CPI plus six percentage points over the past decade.
Why Young South Africans Avoid Medical Aid
A major factor discouraging young South Africans from taking out medical aid is cost. Discovery Health CEO Ron Whelan pointed out that individuals over 30 earn, on average, 57% more than those under 30, making medical aid contributions a larger portion of a younger person’s disposable income.
Additionally, many young adults operate under the mindset that, because they are healthy, they don’t need medical aid. However, this is a risky assumption. Accidents, unexpected illnesses, and medical emergencies can happen at any time, and without medical aid, young South Africans may face crippling medical bills.
Benefits of medical aid membership as a Young Adult
Protection Against High Medical Costs: Private healthcare in South Africa is expensive, and a single emergency can cost thousands. Medical aid ensures access to quality healthcare without the financial burden of paying out-of-pocket.
Emergency and Hospital Cover: Even young and healthy individuals can face accidents, injuries, or sudden illnesses that require immediate medical attention. Medical aid provides coverage for hospital stays, surgeries, and specialist care.
Preventative and Wellness Benefits: Many medical aid plans offer free screenings, vaccinations, and wellness programs that help detect and prevent serious health conditions early on.
Long-Term Savings: Delaying medical aid may result in higher penalties when joining later in life. Late-joiner penalties (LJP's) increase monthly premiums, making it more expensive to get coverage when you need it most.
Access to Affordable Plans: Medical aid providers have introduced cost-effective options tailored to younger individuals. Discovery’s Active Smart plan starts at R1,350 per month, while their KeyCare Regional Start plan is available from R1,184 per month. Bonitas has also introduced the BonStart and BonStart Plus plans, catering specifically to young professionals and offering comprehensive coverage at competitive rates.
The Bottom Line: Secure Your Health and Your Finances
The notion that medical aid is only for older or sick individuals is a dangerous misconception. Life is unpredictable, and securing medical aid early provides financial protection and peace of mind.
At Wallstreet Financial Services, we specialize in helping South Africans find the right medical aid solutions tailored to their needs and budgets. Whether you are exploring options for the first time or looking to upgrade your coverage, contact us today for expert guidance on securing your health and future.
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