The Council for Medical Schemes (CMS) has defended its decision to maintain a 9.5% contribution increase for the Government Employees Medical Scheme (Gems), arguing that reducing it to 7.5% would jeopardize the scheme's long-term financial health.

Despite opposition from trade unions like the Public Servants Association and Cosatu, who claim the hike outpaces public sector wage growth, CMS maintains that affordability must be balanced with financial sustainability and member protection.Senior manager Stephen Monamodi emphasized that the 9.5% increase ensures solvency, prevents reliance on reserves, and safeguards beneficiaries' interests.The regulator rejected Gems' proposal to lower the hike, stating it would only delay financial challenges, leading to steeper future increases.

CMS reiterated its commitment to statutory obligations under the Medical Schemes Act, highlighting that actuarial assessments and stakeholder input were considered.

While acknowledging financial strain on government employees, Monamodi stressed that reducing the increase would compromise the scheme's sustainability.Gems has accepted the decision, pledging to explore future adjustments that balance affordability with financial stability.