Psemas contract on hold

13 October 2021 | Health

OGONE TLHAGE



WINDHOEK

The finance ministry has placed the lucrative Public Service Employees Medical Aid Scheme (Psemas) on hold, pending reforms it is currently undertaking.

This likely means bidders will have to wait for the reforms to be completed before submitting their proposals to manage the medical aid scheme on behalf of government.

“We have decided to put the process on hold pending the investigation on Psemas reforms. We are trying to avoid committing to long-term arrangements before the finalisation of the reforms,” interim spokesperson in the ministry, Tonateni Shidhudhu, explained.

He also provided insight on whether the ministry will be able to administer the scheme itself.

“We are hoping that this process will be finalised by end of this financial year. One of what we are looking at currently is whether Psemas will be able to handle self-administration,” he said.

Bids for the Psemas contract closed in September 2020.

Requirements lowered

A requirement that the bidder must have operating capital of N$74 million was lowered to N$18.5 million.

Bidders needed three years’ experience in managing a medical aid fund, down from the original five years.

Meanwhile, the number of members under management by the bidder was lowered from 143 500 to 50 000.

With 200 000 members, Psemas has been administered by Methealth Namibia Administrators since 2004, following its merger with Namhealth Administrators in that same year.

The International Monetary Fund in December 2018 noted that the fund had received approximately N$7 billion from the government since 2016.

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