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BL Premium reports that after this year’s controversial 13.4% hike, unions are pressuring the Government Employees Medical Scheme (GEMS) to keep its 2026 contribution increase to single digits.
The double-digit premium increase was implemented despite opposition from the Public Servants Association and the National Education, Health and Allied Workers’ Union, and came after several years of modest increases. GEMS is the biggest medical scheme for public servants and their dependants. Confirming that unions did not want another double-digit increase, GEMS principal officer Stan Moloabi said: “We will work hard to come up with an increase that takes the interests of the member into consideration while we protect the financial sustainability of the scheme.” Members have indicated they would like next year’s premium increase to be no higher than medical price inflation, which is likely to be about 8.5%, he advised.
Gems is projecting that its contribution income will be R65.5bn instead of R66.7bn. It expects claims expenditure to be R66.4bn, rather than the R65.7bn it budgeted for. The lower-than-anticipated contribution income is due to a slight decline in membership, combined with buy-downs, as some members have switched to cheaper options. The increase in claims expenditure is due to multiple factors, including an ageing population with a growing burden of disease, supplier-induced demand, and ongoing problems with fraud, waste and abuse.
- Read the full original of the report in the above regard by Tamar Kahn at BusinessLive (subscriber access only)
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