BDLive reports that the Government Employees Medical Scheme (Gems) could be insolvent by financial year-end if drastic cost-containment measures are not instituted.  

Several sources within the industry claim the scheme’s solvency ratio plummeted in the first eight months of 2016, and may be as low as 5% or 6% — almost 20 percentage points below the required level.  If the current trend continues, the scheme’s deficit for 2016 could increase to R1.2bn, and its reserves could fall as low as 2% by February 2017.  The scheme’s strained financial position means that if it is to survive, its members will face contribution increases that are almost double inflation, and will have their benefits curtailed drastically.  The scheme’s principal officer, Guni Goolab, said a big concern was a lack of reason for a sudden rise in claims.

• Read this report by Bronwyn Nortje in full at BDLive

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