Business Day reported on 20 May that the Government Employees Medical Scheme (GEMS) expects its solvency ratio to fall to 23% by the end of 2026; below the statutory requirement of 25%.
This follows the scheme’s agreement to reduce the contribution increase for members to 7.5% effective 1 June. Initially the increase was set on 9.8% but after pressure from unions it was decreased to 9.5%.
GEMS, the largest medical scheme in SA, has about 2.4m. beneficiaries.
“In his budget speech to Parliament, Public Service and Administration Minister Mzamo Buthelezi said the reduced increase in GEMS contributions would provide relief to public servants while supporting the scheme’s long-term sustainability.”