Discovery earnings growth strengthened in its latest financial year as investments in banking, health and international operations increasingly translated into profit and cash generation. The group reported a 17% increase in normalised operating profit to R17.75 billion. Cash conversion reached 85%, while the full-year dividend increased 33% to 384 cents per share. Discovery’s share price has also reflected growing investor…
Tag: Health Insurance
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Health Insurance Growth Reshapes Private Healthcare Market
Health insurance is now the fastest-growing segment of South Africa’s private healthcare market, driven by consumers seeking more affordable options than traditional medical aid. Momentum Health estimates the health insurance market is growing by 14% to 16% annually, significantly outpacing the largely stagnant medical scheme sector. Over 1.2 million principal members now hold health insurance policies, covering nearly 2 million…
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Medical Aid Schemes Face Crisis As Young Members Exit
The intense debate around National Health Insurance (NHI) often dominates the news in South Africa. This focus has obscured a severe crisis within the private healthcare sector. The traditional funding model is under immense pressure. Private healthcare relies heavily on cross-subsidisation. Younger, healthier members pay premiums that fund the care of older, sicker individuals. This system only functions when enough…
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SA’s Missing Middle Faces Growing Healthcare Crisis
South Africa’s healthcare system has long faced a stark divide. An overburdened public sector stands in sharp contrast to a costly private system. However, industry experts warn that the nation’s most urgent challenge is a widening gap between the two. This issue is often referred to as SA’s Missing Middle. The “missing middle” consists of working South Africans who earn…
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German Drug Price Reforms Shake Pharma And Hospitals
Germany’s cost-of-care debate is moving from rhetoric to legislation. And it is landing hard on medicines and hospitals. The latest discussions on German drug price reforms come as Berlin is trying to stabilise statutory health insurance funds that are projected to drift deeper into deficit. Government estimates put the potential shortfall at around €40bn by 2030 if spending is not…
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Dis-Chem Health Hub Drives Integrated Primary Care
Dis-Chem is stepping up its shift from pharmacy-led retail to wider healthcare delivery. The group says it wants to tackle South Africa’s “fragmented” healthcare system. Consumers often face rising costs. They also face long waiting times. Services can feel disconnected. The retailer’s answer is a new Dis-Chem Health Hub model. It brings multiple services into one setting. The pilot format…
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Employer-Sponsored Health Insurance Costs Rising Sharply
A salaried job with health benefits has long been the gold standard of US employment. That assumption is now under serious pressure. Sharply rising premiums are prompting young, healthy workers to opt out of company health plans. Some are going without cover entirely. Others are turning to cheaper alternatives such as medical cost-sharing cooperatives. The trend is a growing concern…
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Momentum Bonitas Deal Impacts Medical Aid Landscape
Momentum’s latest results point to a group that is gaining confidence in a tough insurance market. The standout move is operational, not financial. The Momentum Bonitas Deal means that, from June, Momentum will become the administrator of Bonitas, South Africa’s second-largest open medical aid scheme. It is described as the biggest medical scheme transfer in the country to date. This…
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Momentum Bonitas Deal Lifts Market Share To 30%
The Momentum Bonitas deal is set to reshape South Africa’s tightly concentrated medical scheme administration market. This follows Momentum Health winning the tender to administer the Bonitas Medical Fund. The transfer takes effect on 1 June 2026. It is being positioned by Momentum as a springboard for further growth in a sector dominated by a handful of large players. Momentum’s…
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Discovery Vitality Results Show Surge In Global Profitability
Discovery has reported a significant boost in its latest financial period. The group’s strategy to unify its Vitality composite onto a single platform is yielding impressive returns. These Discovery Vitality results highlight a 41% increase in normalised profit for the composite. This figure reached R2.1 billion for the six months ending December. In a strategic move during 2024, the Discovery…
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Discovery’s Interim Results Highlight Strong Growth
Discovery has announced a significant surge in its financial performance for the first half of the year. The group expects headline earnings to rise by nearly a third. Discovery’s interim results follow a period of robust operational success across its various divisions. The South African-based financial services giant released a trading statement covering the six months ending 31 December. The…
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Dis-Chem MyHealth Partnership Defends Retail-Led Cover
Dis-Chem has defended its health insurance partnership with Centriq and Kaelo after a ruling by the Council for Medical Schemes (CMS). The pharmacy retailer says the decision clarifies the process. It argues it is not a warning shot against retail-led healthcare models. The CMS found that changes to the branding and presentation of Centriq’s MyHealth insurance products under the Dis-Chem…