GEMS Claims to Have Proven Its Responsiveness to Members
Pretoria – The Government Employees Medical Scheme (GEMS) has shown its commitment to its members by lowering the proposed 2026 contribution increase from a weighted average of 9.8% to 9.5%.
Moreover, on Saturday, 8 May 2026, the Scheme announced that it is currently “processing an application to further reduce this 9.5% to 7.5% effective 1 July 2026 (calculated with the 31 December 2025 contribution as a base), pending formal approval from the Council for Medical Schemes (CMS) as the regulator.”
In a statement shared with The Bulrushes, GEMS expressed its support for the outcome of the LRA Section 77 application put forth by FEDUSA (Federation of Unions of South Africa) at NEDLAC.
The Scheme values the fruitful discussions facilitated by the NEDLAC process, which served as a vital platform for stakeholders to voice concerns regarding healthcare affordability and the overall challenges faced by members.
GEMS took part in the discussions as a respondent to the LRA Section 77 application.
Additionally, GEMS highlighted the importance of “continued engagement” regarding matters affecting members and the sustainability of healthcare funding within the regulated medical schemes environment.
NEDLAC’s (Standing Committee) ruling indicated that the issue did not fall within the scope outlined in Section 77 of the Labour Relations Act for protected socio-economic protest action.
Dr. Stan Moloabi, GEMS Principal Officer, remarked, “While we encourage stakeholders to voice their concerns, it is crucial that this issue is addressed in a balanced and constructive way that prioritizes the interests of both members and the public.”
“Even though this issue is between the involved parties, we remain focused on protecting our members and preventing further affordability pressures on the public.”
“As GEMS, we are dedicated to constructive dialogue that seeks practical and sustainable solutions while safeguarding the long-term interests of our members.”
The Scheme reiterated that its foremost responsibility is to ensure members have access to quality healthcare benefits in a financially sustainable way.
“Every decision made by the Scheme entails carefully balancing affordability, benefit protection, financial sustainability, and regulatory obligations,” stated Dr. Moloabi.
“Our aim is to alleviate the financial burden on members while ensuring the Scheme remains viable and maintains integrity for both current and future beneficiaries.”
In its statement, GEMS also underscored that contribution decisions are governed by a regulatory framework that complies with the Medical Schemes Act.
“This framework takes into account various factors such as medical inflation, utilization trends, solvency requirements, and the necessity to uphold comprehensive benefits for members,” GEMS stated.
The Scheme emphasized its commitment to ongoing dialogue with organized labor, regulators, employers, and all relevant stakeholders to achieve equitable, sustainable, and member-focused healthcare solutions.
This week, the Public Servants Association (PSA) expressed its support for GEMS’s decision to reduce the weighted member-contribution increase from 9.5% to 7.5%, effective 1 July 2026, subject to Council for Medical Schemes approval.
“This outcome comes after a sustained push and intervention from organized labor, including discussions with the GEMS Board of Trustees, submission of memoranda, protest actions, and escalation through statutory processes,” the union noted.
While the PSA acknowledges this reduction as a positive step, it remains concerned about the significant impact on employees from January to the present.
The PSA further stresses that several key issues raised with GEMS remain unresolved.
These concerns relate to governance failures, elevated administrative and outsourcing costs, fraud and claim leakages, benefit design choices, and insufficient consultation with members prior to implementing major financial decisions.