Cheaper health insurance can look like a lifeline, but could fall short for a serious claim

Cheaper health insurance can look like a lifeline when the cost of living and the cost of medical aid schemes keep climbing. Medical schemes had an average contribution increase of 8.10% in 2026, and new entrants and current members alike are asking whether health insurance could take the place of medical aid. Lee Callakoppen, the principal officer of Bonitas Medical Fund says the difference may only become clear on the day it matters most, with a serious diagnosis, a long stay in hospital or a real emergency. Callakoppen said in an interview with BizNews that health insurance falls outside the Medical Schemes Act and works within set limits and exclusions, while a medical scheme is compelled to pay for prescribed minimum benefits even when your savings have run out. He explains what that gap can mean when you claim, and what to weigh up before you make the switch. - Linda van Tilburg