GEMS Asserts It Has Demonstrated Responsiveness to Members
Pretoria – The Government Employees Medical Scheme (GEMS) has demonstrated its dedication to its members by reducing the anticipated contribution increase for 2026 from a weighted average of 9.8% to 9.5%.
Furthermore, on Saturday, 8 May 2026, the Scheme announced that it is currently “processing an application to further decrease this 9.5% to 7.5% effective 1 July 2026 (based on the 31 December 2025 contribution), pending formal approval from the Council for Medical Schemes (CMS) as the regulatory body.”
In a statement shared with The Bulrushes, GEMS expressed its backing for the outcome of the LRA Section 77 application presented by FEDUSA (Federation of Unions of South Africa) at NEDLAC.
The Scheme values the productive discussions facilitated by the NEDLAC process, which provided a crucial platform for stakeholders to express concerns about healthcare affordability and the overarching challenges faced by members.
GEMS participated in the discussions as a respondent to the LRA Section 77 application.
Additionally, GEMS emphasized the significance of “ongoing engagement” concerning issues that impact members and the sustainability of healthcare funding within the regulated medical schemes landscape.
NEDLAC’s (Standing Committee) decision indicated that the matter did not fall within the parameters of Section 77 of the Labour Relations Act concerning protected socio-economic protest action.
Dr. Stan Moloabi, GEMS Principal Officer, stated, “While we encourage stakeholders to express their concerns, it is imperative that this issue is approached in a balanced and constructive manner that prioritizes the interests of both members and the public.”
“Although this issue is between the involved parties, we remain committed to safeguarding our members and alleviating further affordability pressures on the public.”
“As GEMS, we are focused on constructive dialogue aimed at identifying practical and sustainable solutions while protecting the long-term interests of our members.”
The Scheme reiterated that its primary responsibility is to guarantee members access to quality healthcare benefits in a financially sustainable manner.
“Every decision made by the Scheme involves meticulously balancing affordability, benefit protection, financial sustainability, and regulatory responsibilities,” Dr. Moloabi stated.
“Our goal is to ease the financial burden on members while ensuring the Scheme remains viable and maintains integrity for both current and future beneficiaries.”
In its announcement, GEMS also highlighted that contribution decisions are governed by a regulatory framework that complies with the Medical Schemes Act.
“This framework considers various factors such as medical inflation, utilization trends, solvency requirements, and the need to maintain comprehensive benefits for members,” GEMS stated.
The Scheme reiterated its commitment to continuous dialogue with organized labor, regulators, employers, and all relevant stakeholders to achieve equitable, sustainable, and member-centric healthcare solutions.
This week, the Public Servants Association (PSA) expressed its support for GEMS’s decision to cut the weighted member-contribution increase from 9.5% to 7.5%, effective 1 July 2026, subject to Council for Medical Schemes approval.
“This result follows a sustained effort and intervention from organized labor, including discussions with the GEMS Board of Trustees, submission of memoranda, protest actions, and escalation through statutory channels,” the union noted.
While the PSA acknowledges this reduction as a positive development, it remains concerned about the substantial impact on employees from January to date.
The PSA also emphasizes that several critical issues raised with GEMS remain unresolved.
These concerns pertain to governance failures, elevated administrative and outsourcing costs, fraud and claim leakages, benefit design decisions, and inadequate consultation with members prior to implementing significant financial decisions.