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Mediclinic News : Contributions to GEMS medical scheme to rise 15 percent

Title

Contributions to GEMS medical scheme to rise 15 percent

Date

2016-12-07

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News Description

BUSINESS LIVE South Africa’s 1.3-million public servants have until Thursday to consider whether to amend their healthcare plans, after it was agreed on yesterday that contributions to the Government Employees’ Medical Scheme (GEMS) will rise 15 percent from January 2017. The state subsidy to employees will increase 8.8 percent, meaning state employees will pay the additional 6.2 percent required to keep GEMS solvent. Public servants and the government agreed during collective bargaining in 2015, to retain 75 percent medical assistance for in-service employees, with state contributions capped at R925 per principal member and R565 per dependant. The parties further agreed to adjust the subsidy according to the medical price index on January 1 each year. Public Servants’ Association (PSA) assistant GM Leon Gilbert confirmed the agreement on Tuesday, saying labour had previously raised questions about extending the period for choosing plan options. While not part of collective bargaining, GEMS had informed the Public Service Co-ordinating Bargaining Council that the option to change plans had already been extended to December 7, he said. It was reported in August that sources within GEMS said the scheme’s solvency ratio had dropped in the first eight months of 2016, reaching as low as five percent or six percent - almost 20 percentage points below regulatory levels.
Created at 2016/12/20 01:54 PM by Mediclinic
Last modified at 2016/12/20 01:54 PM by Mediclinic