The Council for Medical Schemes (CMS) has rejected a proposal by the Government Employees Medical Scheme (GEMS) to lower its average 2026 contribution increase to 7.5%, warning that the move could undermine the scheme’s financial stability. – Business Day (1 July 2026)
CMS registrar Musa Gumede said affordability concerns could not take precedence over GEMS’s legal obligation to "remain financially sound and protect members’ long-term interests".
According to CMS projections, implementing the proposed 7.5% increase in July would result in a net deficit for the year. GEMS’s solvency ratio would fall to 22.9% in 2026, then decline further to about 21%.
The CMS said GEMS had not demonstrated a credible plan to restore its solvency position.