In a bold move set to bring something new to the medical aid industry, Fedhealth and Sanlam have partnered to reboot medical aid cover with a fresh approach. The increased competition as a result of a new entrant can only benefit consumers in terms of choice, quality and affordability. The new scheme is set to launch on 1 October and be available to join from January 2026.
Competition is healthy: it’s the cornerstone of any thriving economy. In a market with healthy competition, businesses work harder to provide a better offering, which leads to lower prices, better quality, more choice and more innovation. The result? The consumer benefits.
While there are industries in South Africa with a healthy competitive landscape, others, such as banking, insurance and mining, are dominated by a few major players. The same is true for the medical aid industry: while there are over 70 medical schemes in South Africa, only 16 of these are open schemes available to the public (the remainder are restricted schemes that are only open to employees of certain organisations).
But it doesn't end there. Of these 16 open schemes, only five make up around 87% of the market share, with one scheme in particular making up nearly 58% of the total market share. Unfortunately for consumers, this means they could be missing out on getting the best possible offering at the lowest possible price. In other words, a shake-up is long overdue.
With this in mind, one of South Africa’s most established and trusted medical aid schemes, Fedhealth, has joined forces with financial services giant Sanlam to “reboot” the concept of medical aid. The scheme, set to launch on 1 October this year and be available to join from January 2026, aims to address common frustrations consumers have with medical aid, such as it being unaffordable, rigid and complex to understand.
In terms of the new scheme’s priorities, customisation is front and centre. “Everyone is different, and while most medical aids offer a choice of plans, there's been no real way up until now to create a medical aid that truly suits the individual,” says Fedhealth’s principal officer, Jeremy Yatt. “We're redefining what medical aid should be, with flexible and personalised plans that adapt to the needs and budgets of real South Africans.”
As it stands, most medical aids require you to move to a different plan if your needs change, for example if you’re planning a family or develop a particular health condition that requires more medical care. The new scheme aims to address this by allowing members to tweak and change the plan they’re currently on.
“With customisation, consumers don't end up paying for a long laundry list of benefits they don't need,” says Yatt. “Rather, they can choose the ones that suit them and then leave the rest, leading to significant cost savings.”
Because of this ability to customise their medical aid plan, the cost savings are a natural follow-on. This, in turn, means that plans can be more affordable – and therefore more accessible – to more South Africans.
The new offering also aims to address the common consumer frustration of complicated and difficult-to-understand medical aid. "For many people, medical aid is seen as a complex product filled with rules and jargon that is difficult to understand, making it hard for them to know what they're really getting, or what they're actually paying for," says Yatt.
The new medical aid scheme, Yatt says, is trying to make its offering as simple as possible so that members understand precisely what they're covered for and when. This provides a level of comfort where members don't have to live in fear that they won't be adequately covered when they genuinely need it. "We want to take the element of surprise out of medical aid so that it's clear, honest and actually makes sense to consumers," says Yatt. With this simplicity comes consumer trust, which Sanlam and Fedhealth agree is invaluable in attracting and retaining new members so that the scheme can grow and thrive.
“Our partnership agreement with Fedhealth supports our objective to significantly upweight our health focus,” says Sanlam Group CEO Paul Hanratty. “Many South Africans need affordable private healthcare delivered by a solid medical aid. Our partnership with Fedhealth demonstrates our commitment to enabling accessible healthcare and reinforces our outlook to encourage our clients to live confidently, healthily and to resiliently build wealth.”
The partnership between Fedhealth, a trusted name since 1936, and Sanlam, one of South Africa's most established financial institutions, creates a synergy of strengths when it comes to medical coverage and insurance. The result is a scheme that offers real value at a great price: exactly what competition should do. With two major players shaking up the medical industry, the results can only benefit consumers with an offering that's transparent, trustworthy, affordable and simple.
