The Government Employees Medical Scheme (GEMS) has been slammed by unions for its failure to obtain regulatory approval to reduce member contributions. They have also questioned whether it had made a strong enough case to the Council for Medical Schemes (CMS) for the reduction, reports Business Day.
The average contribution increase for this year, initially pegged at 9.8%, was cut slightly to 9.5% in April, after union pressure, but last week the regulator rejected its request to lower the contribution increase still further, to 7.5% in July.
The CMS said this decrease was not in the best interest of GEMS members as it jeopardised the scheme’s long-term financial stability.
“We suspect that GEMS hasn’t put up a strong enough case to the CMS because in … everything else that they do, they are proving very mediocre. The only place where they’re not mediocre is in how much they spend (on) themselves,” said Cosatu spokesperson Zanele Sabela.
Cosatu has long highlighted what it considers excessive expenditure on board fees and principal officer remuneration.
The federation was also concerned about the scheme’s failure to rein in fraud and its decision to establish its head office in the costly Pretoria suburb of Menlyn, she said.
The Public Servants Association (PSA), the third biggest public sector union, called for full disclosure of the documents GEMS submitted to the CMS motivating for the 7.5% contribution increase.
“They must provide us with proof of what they submitted so we can satisfy ourselves that there was an effort made to reduce the subscription to 7.5%,” said PSA GM Reuben Maleka.
“Do they realise that it means members will have to cancel (membership) because it’s unaffordable?” he said.
Business Day article – Unions grill GEMS over failed bid to lower fees (Restricted access)
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