Government scheme grows 342%

The government employees medical scheme (Gems) is engulfing the medical aid industry, with the number of principal members on the scheme increasing by 342% to just under 200 000 members for the 12 months to end-December 2007.

By 31 December 2007, there were 192 082 principal members registered on Gems, compared to the 44 602 at the same time in 2006.

Swazi people have a saying?the sleeping grass is awakened by the fire. We believe that GEMS is a furnace that is sweeping the medical aid industry," said Gems chairperson Richard Levin.

According to Levin, more than half of Gems members have never accessed a medical subsidy before GEMS.

SA's Minister of Public Service and Administration, Richard Baloyi, told stakeholders on Thursday that Gems' continuous growth in membership "keeps making headlines".

"The first quarter of 2008 statutory report issued by the Council for Medical Scheme's shows the extent to which GEMS is not only growing but also growing the sector. In the first quarter alone the medical scheme industry grew by 5.9%," said Baloyi.

At the December 2007 year-end, the scheme had a net contribution income of R2.5m, ballooning more than 1 000% from the R216.2m contributions at end-December 2006.

Its net surplus for the year had increased 61% to R132.501m, from R81.9m the same period in 2006.

"We did have an R130m surplus last year, which we have used to filter back to members and have used in part, to build our reserves," said Gems principal officer Eugene Watson.

This followed an announcement made by Gems, saying its members will only have to pay 11.2% more per month in 2009 for their healthcare cover and that their benefit limits will increase.

Watson said that in rand terms, members can expect to pay between R12 and R188 more per month, depending on the benefit option they chose and their salary levels. Gems had also increased the income bands applicable to all benefit options and many members may find that they have actually moved "down" income bands.

"This means that one out of two members will walk away paying less next year than they do now," he said.

Levin had also said that the re-issued tenders for three of the scheme's operational services had been awarded following a transparent and fair procurement process.

"Metropolitan Health Group (MHG) retained the tender for scheme administration services while Qualsa retained the tender for medicine clearing house services. The tender for emergency medical evacuation services was awarded to Netcare 911."

The Government Employees Medical Scheme was registered on January 1, 2005. It is a separate legal entity that does not form part of any government department or public entity.

-Fin24.com