23 May 2006
As part of the improvement in terms and conditions of service of public
servants, the State as Employer and Labour identified the restructuring of
medical assistance to employees as a priority area. This has largely been
informed by the fact that the costs made membership of medical aid schemes both
unaffordable and inaccessible to 40% of public service employees.
To this end, in its quest to provide more equitable and affordable
healthcare to employees, Government Employees Medical Scheme (GEMS) was
established and registered on 1 January 2005. The services of an administrator
including medical service-providers have since been procured and active
enrolment of members to GEMS commenced on 1 January 2006.
Membership has grown exponentially and currently are in excess of 8 500
principal members covering 28 000 dependants. Furthermore, GEMS is experiencing
a growth rate of 150 principal members on a daily basis.
The State as Employer tabled its revised proposal for consideration in the
Public Service Co-ordinating Bargaining Council (PSCBC) on 8 May 2006 based on
Labourâs proposals. This proposal, which is an improvement on the current
benefit, is intended to give effect to the following principles:
* ensuring greater accessibility by providing affordable medical cover to
all employees especially lower-income earners to take up medical cover
* aligning the medical aid subsidy to the new tax structure
* promoting the enrolment of employees on GEMS
* ensuring cost-effective medical cover for employees on GEMS over the
long-term
* the efficient administration of the medical subsidy
* the recruitment and retention of employees with scarce skills.
The draft agreement is before parties to the PSCBC and will be dealt with as
part of the collective bargaining process.
The Minister for Public Service and Administration will issue a statement on
these processes in due course.
Enquiries:
Clayson Monyela
Tel: (012) 336 1167
Cell: 082 806 7405
E-mail: Claysonm@dpsa.gov.za
Issued by: Department of Public Service and Administration
23 May 2006
