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The merger of Sizwe Medical Fund and Hosmed Medical Scheme brought together Sizwe’s 46 900 membership with Hosmed’s 21 000. The merged entity (Sizwe Hosmed) is the eighth largest medical scheme in the country with the fourth-highest solvency ratio of the top 10 largest medical schemes.

The merger is mutually beneficial to both Schemes, where the combined balance sheet and increased membership size can unlock efficiencies and economies of scale to the benefit of all members. These improved metrics are important for the market and brokers, as the Schemes aim to achieve their key objectives of membership growth and retention.



  1. The merger brings together Sizwe’s 46 900 membership with Hosmed’s 21 000, making the merged entity the 8th largest medical scheme in the country, resulting in 69 000 principal memberS.

  2. Members will have a greater variety of options to choose from in the Amalgamated Scheme.

  3. The current option structures of both schemes blend well, creating a differentiated product suite that does not impact members, and creates tiered levels of cover across multiple price points.

  4. The Amalgamated Scheme is expected to have reduced scheme expenses per member which will assist in reducing the financial deficit position.

  5. The merged entity will leverage larger economies of scale and bargaining, including purchasing power and efficiency gain with greater financial sustainability attributed to the larger risk pool.

  6. Sizwe Hosmed will become the 8th largest open scheme in the industry, with a larger and more stable risk pool to reduce volatility and reduce its net deficit position.

  7. A combined competitive product suite, offering members a greater variety of benefit options.

  8. A reduction in non-healthcare expenditure for the combined scheme.

  9. Minimal impact on member contributions and benefits.

  10. No member confusion due to the retention of both scheme names in the name of the amalgamated scheme as well as retention of almost all benefit options.

  11. Access to effective and integrated managed care.

  12. Combined marketing strategy and newly available distribution channels.

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