The Ministry of Finance says it is planning to review the Public Servants Employee Medical Aid Scheme (PSEMAS) following a continued steep rise in operating costs.
This comes as the State-owned medical aid was allocated an additional N$230 million in the Mid-Year Budget Review, consisting of N$200 million for funding shortfalls because of increased claims due to the third wave of COVID-19 and N$30 million for subscription fees on top of N$2.6 billion already allocated for the current financial year.
To mitigate the continued ballooning operating costs of the scheme, which has over 290 000 members, the Finance ministry said it will implement reforms such as re-registration of PSEMAS members and dependents, collect arrears of non-contributing members, review contracts of PSEMAS Health Service Provider and review the administration of the schemes contract.
Finance ministry Acting Executive director, Francois Brand, said consultants led by Dr Johann Van Zyl, will provide actuarial and technical services as part of the scheme’s review, and will be expected to report back by the end of December.
“The consultancy will among others, include an examination into the Benefits and Contribution Structure, PSEMAS Tariff and overall PSEMAS Governance and Administration model,” he said.
The government department also advised that a review of PSEMAS tariff, which has become a bone of contention with Health Care Service Providers, will only be possible upon completion of on-going structural reforms of the scheme.
The Namibia Dental Association recently announced that its members will cease offering services to PSEMAS members at the current tariff, demanding an upward review.
“While fully cognisant of the need to have the PSEMAS tariffs increased, we have informed the Association and other Health Care Service Providers of the on-going PSEMAS Structural Reform that is aimed at restructuring the scheme to achieve internal cost savings and alternative modes of service provision and that the issue of tariffs is part of the reform,” the Finance ministry said.
“We would like to reiterate that the Ministry of Finance takes the issues raised by the Association as serious, thus is working determinedly to ensure that the PSEMAS reform is delivered within the set time frames.”
In September the Finance ministry terminated benefits to 15 162 former civil servants who were not contributing the required fees but remained covered.
