Namibia PSEMAS medical aid scheme controversy

The Public Service Employees Medical Aid Scheme (PSEMAS) in Namibia has come under scrutiny regarding its governance, sustainability, and integrity. Initially, former Health Minister Dr. Bernard Haufiku called for the scheme to be replaced by a National Health Fund (NHF), arguing that the N$ 4 billion program lacks proper governance and fails its members. Haufiku proposed a phased transition prioritizing vulnerable groups, while criticizing government decisions made without stakeholder consultation.

Subsequent developments have highlighted severe financial and ethical challenges. Prime Minister Elijah Ngurare raised concerns regarding potential fraud and a “cartel involving doctors and scheme insiders” who may be overclaiming benefits. Former Finance Minister Calle Schlettwein suggested biometric verification to curb misuse by practitioners and members, noting that the ‘extended family principle’ has allowed non-contributing individuals to access benefits.

Finance Minister Ericah Shafudah has labeled the current funding model unsustainable. To address these issues and stabilize the scheme, the government has implemented reforms such as a governance council and benefit caps, while increasing the national budget appropriation to accommodate the scheme’s funding requirements.