The compulsory membership of Members of Parliament (MPs), Members of Provincial Legislatures, and judges in the statutory Parmed medical aid scheme is facing potential overhaul following the introduction of a new bill by ActionSA in Parliament.

The proposed amendments to the Parliamentary and Provincial Medical Aid Scheme Act aim to provide public representatives and judges with the option to choose their own medical aid schemes rather than being bound to Parmed.

Parmed serves as the sole provider for 1,254 active members and 1,208 “continuation” members, offering state subsidies based on years of service.

ActionSA MP Kgosi Letlape expressed significant concerns regarding “the substantial deductions” associated with Parmed, noting that the mandatory deductions from members’ salaries impose a financial burden.

“Parmed’s one-size-fits-all approach fails to accommodate the diverse needs of its members, who have varying family sizes and healthcare requirements.

“This lack of flexibility results in inconsistencies and reinforces the argument that a single, compulsory scheme cannot effectively cater to all members, yet they have no alternative but compulsory contributions to Parmed,” he said.

The bill, which the public can comment on until September 28, proposes that Parmed members may terminate their membership by giving at least one calendar month’s written notice to the medical aid scheme once the bill is passed.

In a presentation to the Standing Committee on Financial Management of Parliament on Friday, Parmed came under scrutiny.

It was revealed that Parliament is currently paying R8.1m per month towards MPs’ contributions.

The scheme, administered by Medscheme, receives monthly contributions totalling R28.87m, and R8.87m is subsidies, and the balance is deducted from members’ salaries.

Its presentation indicated that a member-only contribution was R8,555, while two adults and two children were R20,039.

EFF MP Hlengiwe Mkhaliphi said Parmed was very expensive.

“We raised this issue since we arrived in Parliament in 2014. We even attempted to take this matter to court, but there were some discussions among the parties and Parliament to talk among ourselves,” she said.

Mkhaliphi complained that she can’t afford to put her second child in the medical aid because her contribution was increasing while they don’t get a salary increase every year.

“As members, we are saying the scheme is very expensive,” added Mkhaliphi before listing some of the problems experienced with Parmed.

Other MPs listed some of their frustrations with the scheme, including having to pay on consulting medical practitioners in addition to the deducted contributions.

ANC MP Cameron Dugmore said it appeared the major dilemma was affordability for the members and asked about measure to incentivise members.

MK Party MP Des Van Rooyen said he too was concerned with affordability, “based on hard facts presented” at the meeting.

“The majority of the members are not happy with the services they get. The bill might be supported by many,” Van Rooyen said before asking whether Parmed was sticking to the status quo or looking at innovative ways to sustain itself and increase its membership.

DA MP Michele Clarke added to the chorus of frustration, citing stagnating salaries that fail to keep pace with rising medical aid contributions.

“I am in the second term. I earn almost the same salary. Our salary is not based on inflation, and there are many years we don’t get an increase,” Clarke said.

Annelie Lotriet, chairperson of the Parmed board of trustees and Deputy Speaker of the National Assembly, said they were aware of the bill published for comment.

“It would be difficult at this point to comment on it on this platform, but as the Parmed board, we are definitely looking at it and what the implications of that will be,” Lotriet said.

She noted that several issues were raised on affordability and others, saying the board was seized with them on an ongoing basis.

“I can assure the members that these issues you have raised are things we take seriously because we want to improve the scheme for the benefit of the members,” Lotriet added.

Parmed board Principal Officer Dawn Davids echoed Lotriet’s sentiments.

“Yes, we are definitely sitting together and trying to come up with creative ideas and ways to make the scheme more affordable,” Davids said.

mayibongwe.maqhina@inl.co.za

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