GEMS suspension sparks parliamentary scrutiny

The Department of Public Service and Administration (DPSA) is set to convene a multi-departmental parliamentary meeting to discuss mounting concerns over the Government Employees Medical Scheme (GEMS). This comes in the wake of the precautionary suspension of Dr Stan Moloabi, the scheme's principal officer, who has faced criticism over recent increases in GEMS contributions.

The proposed meeting, involving key portfolio committees and the Standing Committee on Finance, aims to address governance and oversight issues surrounding GEMS, as well as the broader challenges faced by the scheme. Labour unions, such as Cosatu, Nehawu, and the Public Servants Association, have voiced their discontent over the 9.8% increase in contributions for 2026, deeming it economically unjustifiable amid rising living costs.

While GEMS attempted to reduce the weighted average increase to 7.5%, the Council for Medical Schemes rejected this proposal, warning that such a reduction could jeopardize the scheme's long-term stability. DPSA Deputy Minister Pinky Kekana has now proposed the joint parliamentary session, which is intended to tackle concerns over GEMS' governance and the larger issues facing the scheme.

GEMS chairperson Nomzamo Tutu highlighted that the board had appointed Dr Vuyo Gqola as acting principal officer, emphasizing the scheme's commitment to maintaining its healthcare services for members. The proposed intervention is timely, as GEMS continues to grapple with financial pressures, including a funding shortfall of approximately R2 billion in 2025.

This shortfall resulted from healthcare claims outpacing member contributions, raising questions about the scheme's long-term financial sustainability.