Public sector unions have criticised the Government Employees Medical Scheme after it failed to secure approval for a lower increase in member contributions. GEMS asked the Council for Medical Schemes to reduce its average increase to 7.5% from July 2026. However, the regulator rejected the proposal. The decision means members will continue paying contributions based on the approved average increase…
Tag: Cosatu
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Rising Medical Aid Premiums Ignite Unions Over Healthcare Costs
South Africa’s two major union federations, Cosatu and Fedusa, have escalated their warning that the country’s healthcare funding model is pricing workers out of cover. They argue that the current approach is “unsustainable, too expensive and failing workers”. Health Minister Aaron Motsoaledi has acknowledged the scale of the problem. He agrees that the model is inappropriate and that medical aid…
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GEMS Contribution Increases Spark Talks With Unions
GEMS is currently the largest restricted medical scheme in South Africa. It serves nearly 2.45 million beneficiaries. Membership is strictly limited to public servants and their dependants. To encourage membership, government departments provide subsidies of up to two-thirds of the monthly cost. However, this benefit is only available to those who remain with GEMS. The current conflict stems from GEMS’…
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Public Servant Concerns on Redirecting Medical Aid Contributions
Plans to redirect South African public servants’ significant medical scheme contributions into the proposed National Health Insurance (NHI) fund face considerable hurdles. Delegates at the annual Board of Healthcare Funders (BHF) conference heard this on Tuesday. Any such move would necessitate complex changes to public servants’ conditions of service. Staunch resistance to this process is likely. Public servants currently benefit…
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Cosatu’s stand against NHI amendments: A political showdown
The battle over South Africa’s National Health Insurance (NHI) Act has escalated, with the Congress of South African Trade Unions (Cosatu) refusing to support any amendments. As President Cyril Ramaphosa weighs potential revisions in talks with the Democratic Alliance (DA), Cosatu warns that altering the legislation could destabilise the ruling tripartite alliance. The NHI Act, which aims to provide universal…