GEMS lowers 2026 medical aid increases

Hundreds of Public Servants Association of South Africa members marched in Mthatha before handing over a memorandum against the Government Employees Medical Scheme's fee increase. Picture: SIKHO NTSHOBANE (SIKHO NTSHOBANE)

The Government Employees Medical Scheme (GEMS) has announced another reduction in its 2026 contribution increases.

The weighted average increase for 2026 has been reduced to 7.5%.

In January, GEMS announced an average increase of 9.8% but reduced it to 9.5% in February.

The new contribution increases are set to start from July 1 2026.

GEMS principal officer Stan Moloabi said the scheme understands the financial pressure many public servants face because of the rising cost of living.

“We are acutely aware of the pressure rising costs place on our members and their families. This further reduction reflects our commitment to act in the members’ best interests, while ensuring the scheme remains sustainable for the long term,” said Moloabi.

GEMS said the decision was taken after a detailed review of the scheme’s financial position and consultations with government, labour unions and other stakeholders.

The board of trustees also considered actuarial advice and financial governance principles before making the final decision.

GEMS said it has introduced several measures to improve its financial position and operational efficiency, including better claims management, controlling healthcare costs and improving internal systems. These improvements created an opportunity to return value to members by lowering contribution increases.

The scheme said healthcare costs continue to rise because of increasing hospital and doctor tariffs, higher medicine prices and greater use of healthcare services by members.

GEMS said it will continue monitoring healthcare spending closely while strengthening efforts to fight fraud, waste and abuse in the healthcare system.

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