Former finance minister Calle Schlettwein has proposed the use of biometric verification to reduce abuse of the Public Service Employees Medical Aid Scheme (PSEMAS) in Namibia. According to Schlettwein, the misuse of PSEMAS puts pressure on the fund's sustainability. He made these remarks in response to Prime Minister Elijah Ngurare's concerns about alleged cartel activity within the scheme.
PSEMAS costs approximately N$3.9 billion annually, covering around 100,000 civil servants. The government is currently seeking an additional N$535 million to meet the scheme's funding needs for the current financial year. Schlettwein explained that biometric verification can confirm whether patients accessing benefits are eligible, thereby reducing misuse.
Schlettwein attributed the misuse of PSEMAS to a general abuse by medical practitioners, members, and medical institutions. He stated that during his tenure, he observed that medical practitioners, hospitals, and other institutions would oversubscribe and serve non-members, thereby benefiting from the scheme without contributing to it.
Schlettwein emphasized that any reform should focus on ensuring that only eligible members and dependents benefit from PSEMAS. He noted that the extended family principle has led to many non-members benefiting from the scheme without contributing to it. This, he believes, is a huge problem that needs to be addressed.
The growing number of civil servants and medical inflation are also contributing to the rising costs of PSEMAS. Schlettwein added that abuse by medical practitioners, scheme members, and healthcare institutions adds to the burden. He suggested that biometric verification is a practical measure that can be implemented to ensure PSEMAS benefits only eligible members and dependents.
A 2010 forensic report by Savvy Solutions revealed a case of a Rundu doctor who issued 391 prescriptions of the drug Pegasys, used for treating Hepatitis B and C, and claimed N$1.29 million, receiving N$1.8 million in the process. Investigators found that the doctor had prescribed more of the drug than was needed for the entire African continent.
Schlettwein also emphasized that the government must improve the quality of public healthcare facilities before considering cuts to PSEMAS benefits. He believes that public health services must reach an acceptable standard before civil servants can be expected to rely on them instead of private healthcare.
Key points
- Biometric verification can help reduce PSEMAS abuse by confirming patients' eligibility.
- The misuse of PSEMAS puts pressure on the fund's sustainability.
- The government is seeking an additional N$535 million to meet PSEMAS's funding needs for the current financial year.
