Medshield Unveils 2027 Benefits and 7.9% Contribution Hike

In Short

• Medshield has published its 2027 benefit options and contributions, with a 7.9% weighted average increase.
• The scheme is adding and extending benefits, including more mental health cover and diabetic retinal AI screening.
• Medshield also signed a distribution agreement with Sanlam to bundle healthcare with financial services over time.

What Happened

Medshield said its 2027 contribution changes will average 7.9% on a weighted basis, and that 125,603 covered lives will see increases in the 6% to 7.9% range. A weighted average means the overall increase is adjusted by how many members are on each plan option.

The Johannesburg-based open medical scheme said it grew membership by 4.5% in 2025 and improved its age profile, meaning it added relatively younger members who typically claim less than older members. It said that trend continued into 2026.

For 2027, Medshield is keeping existing benefits while increasing some limits and adding new items. Changes include raising the child dependant age from 21 to 24 across all options, and reducing or removing some co-payments, which are the extra amounts members pay out of pocket when the scheme does not cover the full bill.

It also highlighted expanded mental health support, an integrated chronic care programme for long-term conditions, and diabetic retinal AI screening, which uses software to help spot early eye damage linked to diabetes. Medshield also pointed to “hospital at home” support through Mediclinic from Home, plus an oncology co-funding programme aimed at widening access to newer cancer treatments.

Separately, Medshield said it has signed a distribution agreement with Sanlam, naming the scheme a preferred healthcare partner. Over time, members and corporate clients are expected to get access to Sanlam services such as wellness programmes, gap cover, financial planning, insurance, investments, retirement products, banking, and rewards.

Why It Matters

South African medical scheme members are dealing with tight household budgets and rising healthcare costs. A below-double-digit increase paired with benefit tweaks is Medshield’s bid to reduce out-of-pocket spending while keeping private cover attractive.

The Sanlam distribution deal also shows how health and financial products are being sold together more often. For brokers and employers, bundling gap cover and rewards with medical aid can affect scheme choice and retention, even when core healthcare benefits look similar across providers.