PSEMAS faces possible collapse
Alarm bells are ringing about the current shenanigans at the civil servants' medical aid scheme.
Finance minister Calle Schlettwein says the current rot being experienced at the Public Service Medical Aid Scheme (PSEMAS) may eventually cause its collapse.
The scheme currently provides civil servants with affordable medical aid coverage, which government heavily subsidises.
Speaking at a staff engagement yesterday, Schlettwein appealed to staff members to use the scheme for their own benefit and not to abuse it, saying such behaviour would lead to a collapse of the entire system, rendering many civil servants without appropriate medical aid coverage.
This could result in a situation where public servants would have to use the services of private medical service providers like Prosperity, Namibia Medical Care or Namibia Health Plan, Schlettwein warned.
“If we do not fix the system quickly, the system will fold. Public servants will be sent to private medical aid providers,” said Schlettwein.
PSEMAS, Schlettwein said, also made provision for all civil servants, be it a government minister or cleaner at a ministry, office or agency to derive the same benefits from using the scheme. Its inexistence would also mean that government employees will pay more then what they are currently paying.
“PSEMAS was structured so that everyone gets the same benefits but we messed it up. We did everything in the book that was not allowed. Speaking in my personal capacity, we pay about a 10th of what you will pay for a private medical aid provider,” said Schlettwein.
The other issue raised was that a considerable amount of money was being spent to serve a small number of people. According to Schlettwein, an estimated N$2.5 billion was spent on PSEMAS, while the health ministry was allocated N$6 billion.
“We are spending far too much money on a small number of people. If we do not stop the rot we will lose the system,” Schlettwein.
According to him, plans are now in place to correct past mistakes and prevent a possible collapse of the scheme.
“We are determined to correct it. We will proceed with re-registering every member and dependent and we will soon also implement biometric cards,” said Schlettwein.
“PSEMAS is an issue we need to address with urgency and we are seized with the matter.”
Recently, health minister Bernard Haufiku said PSEMAS' structure was unfair and only benefitted a few Namibians. “We will continue to advance inequality if we continue to allocate N$3 billion in public funds to less than 300 000 Namibians, of which only 124 000 make meagre financial contributions through monthly premiums averaging N$250 per member, while the rest of the population find it hard to pay for their medical care and treatment,” Haufiku said during the recent World Health Day commemorations.
“It is time we changed PSEMAS to make it more meaningful.”
The health minister then suggested a medical aid scheme be established that would help the entire populace instead of just government employees.
“An independent fund, well-managed by professionals and accountable, will go a long way in our quest for universal health coverage,” said Haufiku.
“One strong, robust, well-resourced national medical fund catering for everyone in Namibia, working or not working, insured or not insured, rich or poor, old or young,” he added.
STAFF REPORTER
The scheme currently provides civil servants with affordable medical aid coverage, which government heavily subsidises.
Speaking at a staff engagement yesterday, Schlettwein appealed to staff members to use the scheme for their own benefit and not to abuse it, saying such behaviour would lead to a collapse of the entire system, rendering many civil servants without appropriate medical aid coverage.
This could result in a situation where public servants would have to use the services of private medical service providers like Prosperity, Namibia Medical Care or Namibia Health Plan, Schlettwein warned.
“If we do not fix the system quickly, the system will fold. Public servants will be sent to private medical aid providers,” said Schlettwein.
PSEMAS, Schlettwein said, also made provision for all civil servants, be it a government minister or cleaner at a ministry, office or agency to derive the same benefits from using the scheme. Its inexistence would also mean that government employees will pay more then what they are currently paying.
“PSEMAS was structured so that everyone gets the same benefits but we messed it up. We did everything in the book that was not allowed. Speaking in my personal capacity, we pay about a 10th of what you will pay for a private medical aid provider,” said Schlettwein.
The other issue raised was that a considerable amount of money was being spent to serve a small number of people. According to Schlettwein, an estimated N$2.5 billion was spent on PSEMAS, while the health ministry was allocated N$6 billion.
“We are spending far too much money on a small number of people. If we do not stop the rot we will lose the system,” Schlettwein.
According to him, plans are now in place to correct past mistakes and prevent a possible collapse of the scheme.
“We are determined to correct it. We will proceed with re-registering every member and dependent and we will soon also implement biometric cards,” said Schlettwein.
“PSEMAS is an issue we need to address with urgency and we are seized with the matter.”
Recently, health minister Bernard Haufiku said PSEMAS' structure was unfair and only benefitted a few Namibians. “We will continue to advance inequality if we continue to allocate N$3 billion in public funds to less than 300 000 Namibians, of which only 124 000 make meagre financial contributions through monthly premiums averaging N$250 per member, while the rest of the population find it hard to pay for their medical care and treatment,” Haufiku said during the recent World Health Day commemorations.
“It is time we changed PSEMAS to make it more meaningful.”
The health minister then suggested a medical aid scheme be established that would help the entire populace instead of just government employees.
“An independent fund, well-managed by professionals and accountable, will go a long way in our quest for universal health coverage,” said Haufiku.
“One strong, robust, well-resourced national medical fund catering for everyone in Namibia, working or not working, insured or not insured, rich or poor, old or young,” he added.
STAFF REPORTER
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