75% Subsidy

Pretoria - Government is to pay employees who belong or join Government Employee Medical Scheme, 75 percent of their total monthly medical contribution with effect from 1 July.

This follows an agreement between government and the public sector trade unions reached on Tuesday.

Government will contribute to a maximum of R1900 subsidy comprising of R500 per principal member, R500 per first dependent and R300 per each additional dependant.

For other medical aid schemes government is contributing only R1040 per month.

Making the announcement here today, Minister of Public Service and Administration Geraldine Fraser-

She said the need for restructuring and transformation of the medical assistance in the public service was informed by among other things, unchecked increases in expenditure on medical assistant and the inequality in access to medical cover based on the income levels of employees.

According to research by her department, more than 40 percent of public service employees did not enjoy the benefits of medical scheme membership.

She described the agreement as "revolutionary" as low income employees could now afford the employer subsidy and the same level of health care enjoyed by higher income employees.

The agreement further seeks to ensure greater accessibility by providing affordable medical cover to all employees especially the lower income earners, ensure the cost-effective medical cover for employees on GEMS over the long term and ensure efficient administration of the medical subsidy among other things.

Ms Fraser-Moleketi called on all new employees and those currently not accessing medical cover to join GEMS so they could access the new subsidy.

However, she said those who wished to join GEMS were required to give their current schemes at least a month's notice of their intention to terminate membership.

"The status quo in respect of the employer's medical subsidy will be maintained for those that belong to other registered medical schemes," she said.

She also warned that employees who joined GEMS and thereafter terminated their membership would forfeit the employer's medical subsidy.

However, the minister said trade unions were assured that in the event GEMS was deregistered in terms of Medical Schemes Act, employees belonging to it may join any other registered scheme without loosing the subsidy.

GEMS products consist of five different options with various benefit options including Onyx, Ruby, Emerald, Beryl and Sapphire.

Further, employees on level 1 to 5 who belong or join GEMS get 100 percent subsidisation on the Sapphire option.

It also offers a comprehensive HIV management programme to its members and their dependants.

The scheme started operating in January this year and already more than 11000 government employees have it.

Speaking on behalf of the trade unions, South African Police Union representative, Selva Pillay said they were now getting value for their money as employees.

"We commend the minister for this agreement and definitely other medical aid schemes should watch out for GEMS," he said. - BuaNews