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6 November 2008

Ladies and gentlemen

Government Employees Medical Scheme (GEMS) is succeeding in its mandate.

This is my first media briefing as the Minister for Public Service and Administration where GEMS is the topic of discussion and I would like to start off by quoting President Kgalema Motlanthe in his inaugural speech as the President of the Republic of South Africa. "Mine is not the desire to deviate from what is working." I believe that GEMS is an innovative, practical and workable healthcare solution of choice for our public servants.

With the Public Service being the largest employer in the country I am sure that you would appreciate the magnitude of marrying the need for a cost-effective and globally competitive healthcare solution to the individual healthcare needs of our 1,07 million employees who are spread over different geographical locations, departments and institutions; speak all 11 official languages and other unofficial languages; have varied skills levels; and represent a great diversity of race, culture and socio-economic levels.

GEMS was established three years ago and it is a worthy recognition for all of us to accept that we have practically observed that GEMS has a meaningful role to play in the lives of people.

I spoke to Mrs Rossouw and the Deetlefs family and they have shared their first hand experienced that there is more in GEMS than merely a condition of service, a subsidy and member numbers. It is right that in my briefing we do also remember the personalities and sentiments of the people the Scheme cares for.

Let me reflect on some of the success indicators to bolster a view that GEMS in on course

Access

GEMS provide equitable access. The numbers speak for themselves. GEMS' continuous growth in membership keeps making headlines. More recently, 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 percent. The growth rate remains an achievement for the scheme, which is why I am delighted to report to you today that GEMS currently has almost 300 000 principal members and provides medical scheme cover to over 800 000 people.

Approximately 54 percent of GEMS' members previously did not access the employer subsidy for medical schemes, and this translates to more than 430 000 government employees and their families. They can now loudly proclaim that they are of no less value to others, and that is so because of GEMS.

Over 100 000 employees on salary level 1 to 5 are enrolled on GEMS and this demonstrates the extent to which the scheme has pursued the fulfilment of its mandate.

Affordability

Many public service employees who now enjoy the employer subsidy and medical scheme cover on GEMS did not previously have access to this benefit because it was simply unaffordable for them to be members of a medical scheme. Through GEMS the challenge of affordability has been addressed.

GEMS offers five benefit options that have been carefully designed to provide the most comprehensive cover for different levels of affordability. The contributions, based on the benefits provided, offer members value for money and this is in part due to the low non-healthcare costs that the scheme operates. What is more, all public service employees who become members of GEMS receive an employer subsidy that covers between 75 percent and 100 percent of their monthly premiums, up to a set limit which is dependent on family size. Income bands which determine an employee's contribution also make membership of all options more affordable for enrolled employees.

GEMS have done even more to keep the scheme as affordable as possible. Over the past two years the scheme has kept its average increases in member contributions to within the industry averages which are extremely low. For 2009, we will sustain this low average increase.

I believe, this will bring great relief to existing members and encourage new members to enrol on GEMS, despite the pressured economic times that we currently experience. The annual increases for 2009 are also accompanied by the widening of contribution income bands.

Efficiency

A review of GEMS and its service offering reveals numerous efficiency gains.

In conclusion, chapter 10 of the Constitution speaks to a public administration that must be broadly representative of the South African people, with employment and personnel management practices based on ability, objectivity, fairness and the need to redress the imbalances of the past to achieve broad representation. GEMS's success as a medical scheme serves as an example of how government, as an employer, is making a difference to the health and wellbeing of its employees and redressing past imbalances.

GEMS is a Public Service initiative that works!

Thank you

Issued by: Department of Public Service and Administration
6 November 2008