Impact of Hiv/Aids on Public Servants; Restructuring of the Medical Scheme: briefing

Meeting report

PUBLIC SERVICE AND ADMINISTRATION PORTFOLIO COMMITTEE
25 September 2002
IMPACT OF HIV/AIDS ON PUBLIC SERVANTS; RESTRUCTURING OF THE MEDICAL SCHEME: BRIEFING

Chairperson: Mr Baloyi (ANC)

Documents Handed out:
Medical Assistance Restructuring
Responding to the Threat of HIV/AIDS in the Public Service

SUMMARY
The Minister of Public Service briefed the Committee on the process of restructuring the public service. The Department briefed the Committee on the problems they faced in dealing with employees who were daily infected with the HIV/AIDS epidemic. There were at least 850 000 public servants and half did not belong to any medical scheme. The Minister mentioned that the reason for this might be that the majority of these people could not afford the cost of having medical schemes. With the proposed medical assistance plan the government intended to assist low-income employees and to bring them into the system. These people who were not part of the medical scheme the minister noted, had chosen not to join simply because they could not afford medical aids.

MINUTES
The Minister of Public Service and Administration, Ms Fraser-Moleketi, was asked by Mr Sikakane (ANC) to elaborate on the notion that there were about fifty percent of public servants who were not part of any medical scheme and explain why those people do not belong to any medical scheme.

The Minister pointed out that there were at least 850 000 public servants and half did not belong to any medical scheme. The Minister mentioned that the reason for this might be that the majority of these people could not afford the cost of having medical schemes. With the proposed medical assistance plan the government intended to assist low-income employees and to bring them into the system. These people who were not part of the medical scheme the minister noted, had chosen not to join simply because they could not afford medical aids.

Mr Sikakane (ANC) asked the government if it was anticipating establishing a new medical scheme and if so would it be voluntary or compulsory for public servants to join.

The Minister said that the government intended to establish a new medical scheme and it was going to be compulsory for all public servants to join.

Mr Kgwele (ANC) asked how would the government deal with the public servants who went on early retirement due to poor health. Were such people going to continue to enjoy the benefits of medical aid cover or not?

It was stated that such people would continue to enjoy the benefits of medical aid scheme despite the fact that they were on early retirement.

The Minister was asked by Mr Kgwele (ANC) what would happen if those Members who were HIV positive had disclosed their status and as a result were being discriminated against. Mr Kgwele asked what recourse such people would have under the new medical aid scheme.

Mr Corrie Smith from the Department of Public Service and Administration mentioned that the Department would take disciplinary measures against anyone who discriminated against people who had disclosed their status. According to the Employment Equity Law no form of discrimination was allowed in the labour industry. To do otherwise would be viewed as misconduct.

Mr Waters (DP) asked if the Minister and Department had looked at the impact of the new proposed scheme on the medical aid schemes in SA. The Minister stated that the proposed medical assistance was not the brainchild of the government alone. It came about as a result of thorough consultation between government other organs such as labour and other interested parties. She stated that people must look at this proposal as an attempt to benefit public servants and it was also in line with international trends.

The Director-General, Mr Rapea, noted that the Department had established a committee of Directors-General and senior managers from other Departments that would work together to implement this scheme. The DG mentioned that the proposed scheme was in line with broader government policy.

The Minister mentioned that they have looked at the issue of accreditation of existing medical aid schemes and that they do not anticipate any problems. Their concern was that there could be a reduction in benefits offered to their members. Their aim was to avoid unnecessary expenditures by controlling medical aids.

Mr Abrahams (UDM) asked when would this new scheme start operating.

The Minister mentioned that they had planned to have the new scheme up and running by January 2004.

Mr Abrahams (UDM) asked if the Minister and her Department had engaged labour unions on this matter or not.

The Minister's response was that trade unions indicated that they would support any attempt to alleviate the spreading on HIV/AIDS.

Mr Abrahams (UDM) asked to find out if there were any restrictions on the new medical scheme.

The minister stated that there were no restrictions the only restrictive measure was that the proposed scheme was for public servants and their families.

Mr Waters (DP) wanted to find out from the Minister when the new scheme would be in line with government policy. What would happen to those public servants who were already enjoying benefits of anti-retroviral in private hospitals if they joined the new scheme?

The DG said at the moment there were public hospitals offering ant-retroviral drugs, so there would be no problem on that matter as far as he was concerned.

Mr Abrahams (UDM) applauded the Minister and her Department for helping the poor but pointed out that such schemes would be open to abuse by members. He wanted to find out from the Minister how would they deal with the issue of medical aid abuse.

The Minister pointed out that they were conscious of the fact that people abused medical schemes. The misuse of medical aids fell in line with corruption and fraud. She gave members an example of a certain doctor in Kwazulu Natal who was in imprisoned because of medical aid fraud. They would deal with such cases in the harshest manner.

Mr Govender from the Department of Public Service mentioned that they had an oversight mechanism and would look at that issue of medical aid abuse. If a person abused his or her medical aid such people would end up not having benefits.

Mr Govender mentioned that some people would take an early retirement under the pretext of being sick and thereafter go and work somewhere else. He said that they would deal with such people also.

Mr Rapea told Members that the representatives from the government and the public servants would manage the new scheme jointly. Members would have more say in the new medical aid scheme.

The meeting adjourned.