The Council for Medical Schemes has rejected the Government Employees Medical Scheme’s request to reduce its 2026 member contributions increase from 9.5% to 7.5% .
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- The Government Employees Medical Scheme says its request for a lower increase in contributions has been rejected.
- It initially announced a 9.8% increase in member contributions from 1 January, then dropped this to 9.5% from February amid fierce pushback from labour, with a promise to settle on a 7.5% hike from 1 July.
- But the Council for Medical Schemes is concerned about GEMS’ sustainability if its contributions drop too low.
- For more financial news, visit News24 Business.
The Council for Medical Schemes (CMS) has rejected a request from the Government Employees Medical Scheme (GEMS) for a 7.5% average increase in contributions, with workers now set to face a 9.5% increase instead.
GEMS, which has more than 2 million beneficiaries, initially slated a 9.8% weighted average increase for 2026, saying this was necessary to ensure its long-term financial sustainability. However, the Public Servants Association, which represents about 245 000 current and former government workers, slammed the move saying it drastically outpaced public service salary adjustments. The increase was reduced to 9.5% with effect from February, then, in May, GEMS said it would reduce the contribution further to 7.5% with effect from 1 July.
READ | ‘Victory for workers’: GEMS yields to workers on ‘unaffordable’ 9.5% contributions hike
The scheme submitted a proposal to CMS to reduce the previously approved weighted average contribution adjustment from 9.5% to 7.5%, but said on Tuesday that the request had been rejected.
The regulator previously raised concerns about GEMS’ plan to lower contributions, citing risks to financial stability.
“While the outcome is a decline of the proposal submitted by GEMS, we have to respect the assessment of the regulator and address the concerns raised,” said GEMS principal officer Stan Moloabi.
“GEMS remains committed to working within the regulatory framework on future contribution adjustments that balance the quest for affordability with financial sustainability.”
READ | GEMS slammed for 9.8% increase in 2026 member contributions
GEMS is the largest restricted membership medical scheme in South Africa, with over 890 000 principal members and more than 2.4 million beneficiaries.
It was created specifically to provide healthcare coverage for public service employees.
In comparison, Discovery Health Medical Scheme implemented a weighted average contribution increase of 7.2% from 1 April. Bonitas raised its 2026 member contributions by an average of 8.8%, while Medshield and Bestmed increased theirs by 7.5% and 6.8%, respectively.
With additional reporting from Garth Theunissen.