Union slams GEMS for 9.8% contribution increase, threatens to take to the streets
The Public Servants Association (PSA) has launched a scathing attack on the Government Employees Medical Scheme (GEMS)
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The Public Servants Association (PSA) has launched a scathing attack on the Government Employees Medical Scheme (GEMS) over the proposed 9.8% hike in contributions, warning that the increase threatens the financial survival of public servants.
This comes after the medical aid scheme defended its decision, saying the hike is necessary to maintain financial stability and ensure it can continue covering the healthcare needs of more than 2.4 million public service workers.
PSA said that the increase was “outrageous” and far exceeds hikes announced by private medical schemes, accusing GEMS of punishing public servants instead of addressing issues such as fraud and mismanagement.
"Whilst private schemes such as Discovery and Bonitas announced increases averaging 6%, GEMS has chosen to impose nearly double the burden on government employees, the very people the Scheme was created to protect," the association said.
"Instead of tackling fraud, mismanagement, and inflated administration costs, GEMS has opted to punish its members. This is not sustainability - it is exploitation,".
PSA added that public servants may now be forced to choose between paying for healthcare and covering basic living expenses, describing the situation as unsustainable.
"The PSA will not stand idle whilst GEMS defends the indefensible. Should this continue, the PSA will be left no choice but to intensify actions against GEMS, including mass protests, to demand accountability. The PSA has already submitted agenda items at the PSCBC for the amendment of Resolution 1/2006 to defend public servants and pensioners against the onslaught by GEMS".
The association also said that it was concerning that GEMS continues to defend the proposed increase even as meetings with the union are pending.
"It is concerning that amidst a pending meeting with GEMS, it still has the audacity to defend such an exorbitant increase. Public servants and retired public servants deserve affordable healthcare, not corporate greed disguised as sustainability"
IOL
mthobisi.nozulela@iol.co.za