
GEMS targets future contribution relief after CMS setback
The scheme says R1.7 billion in projected savings could moderate future increases as it prepares for robust talks with organised labour.

The scheme says R1.7 billion in projected savings could moderate future increases as it prepares for robust talks with organised labour.

The CMS argues that a 7.5% increase would have weakened GEMS’s financial sustainability and shifted costs to members in future.

The regulator has rejected the scheme’s proposal to reduce its weighted average contribution adjustment to 7.5%, leaving the existing 9.5% increase in place.

A review of five years of Medihelp’s annual reports traces the events behind the scheme’s fall below and its rise back above the statutory minimum.

Membership, claims, reserves, and solvency all point to a strong year, but they also reveal the long-term pressures facing the scheme.

Twenty years of industry data show that medical schemes have become increasingly dependent on scale, investment returns, and strong reserves to remain sustainable.

An accelerated 19% contribution increase is designed to correct historic under-pricing and shore up reserves.

Medihelp says it will challenge the judgment while the cost of Elaprase awaits a final decision by the CMS Appeal Board.

New benefits, flexibility, and holistic well-being support strengthen Medihelp’s role as a healthcare partner, not just a funder.

Leading open medical schemes have announced increases above the CMS’s guidance, underscoring the tension between regulator calls for restraint and schemes’ funding needs.

The curator will assess Sizwe Hosmed’s finances and recommend whether it should merge, be liquidated, or continue.

The Council for Medical Schemes recommends capping 2026 contribution increases at 3.3% plus “reasonable utilisation estimates”, yet past trends show schemes often push far higher.

Medihelp says its recovery plan is on track, with strong cost controls, younger members, and CMS-approved funding measures set to restore financial stability by 2026.

The deterioration in Sizwe Hosmed’s reserves is attributed to ‘benefit under-pricing and historically unreliable budgetary and forecasting processes’.

The medical scheme says it will use its reserves to limit contribution increases, while possibly improving members’ benefits and reducing co-payments.

Medihelp submitted a CMS-approved three-year plan, requiring gradual contribution increases to restore its reserves to the statutory 25% level.

And the solvency ratio of the restricted Transmed Medical Fund continued to fall in 2022.