The Namibian Public Service Medical Aid Scheme (Psemas) has encountered several issues over the years.
These issues range from ghost members, excessive costs, and overage dependents.
Fortunately, efforts are currently underway to overcome these issues and improve Psemas’ effectiveness.
According to the 2024/25 to 2026/27 medium-term expenditure framework (MTEF), progress on Psemas reforms for 2024/25 is estimated to be at 50%.
The document said the finalisation of Psemas’ immediate and medium to long-term reforms aimed at reviewing the governance structure as well as the design of benefit structure for Psemas is well underway.
The medical aid has suffered from ghost members who drain the fund’s resources.
A draft audit report by Deloitte found that the government paid approximately N$1 billion to non-existent medical aid beneficiaries between 2020 and 2022.
The ghost beneficiaries are individuals who appeared nowhere on the public service payroll system and were subsequently removed from the scheme.
In addition, the finance ministry also discovered that about
32 000 Psemas members were not contributing to the medical aid but were enjoying full benefits.
Earlier this year, the finance minister Iipumbu Shiimi presented an N$8.1 billion budget to Parliament for consideration and approval.
Deputy finance minister Maureen Hinda-Mbuende moved the ministry’s budget for it to reach financial targets for the 2024/2025 fiscal year.
During her motivation, she said Psemas has been allocated N$2.9 billion.
“This allocation is deemed critical as reforms are underway to enhance the management of the fund, and ensure its long-term sustainability. The allocation to Psemas underscores the ministry’s commitment to providing quality healthcare benefits to public service employees and their dependents,” said the deputy minister.
Psemas plays a vital role in ensuring access to essential medical services for government workers, contributing to their overall wellbeing and productivity.
These reforms are aimed at enhancing efficiency, reducing operational costs and strengthening governance mechanisms to safeguard the integrity of the fund.