Govt extends Psemas cover to age 25 and clears up rules for dependants

The government has extended medical aid coverage for members’ dependants to age 25 and clarified rules to prevent misinterpretation and abuse of the scheme.

Previously, dependants were removed from the Public Service Employees Medical Aid Scheme (Psemas) once they turned 21, unless special exemptions applied.

Now, unemployed dependants, unmarried members and full-time students can remain on the scheme until they turn 25, provided they submit proof of enrolment at a university each year through the member’s employer.

Executive director in the Office of the Prime Minister Gladice Pickering confirmed the new amendments yesterday.

“The amendment to Psemas is effective from 1 June 2025,” she said.

The amendment was approved by prime minister Elijah Ngurare on recommendation of the Public Service Commission.

An internal circular dated 5 May from the Office of the Prime Minister says a new regulation also allows the eldest dependent child to take over Psemas membership in the event of a member’s death if the child is unmarried, not working, not on another medical aid fund, and is a full-time student over 21.

The child must apply to the Ministry of Finance within three months of the member’s death.

“This is to ensure there is no interruption in contributions; and such a dependent child is registered as a dependant on Psemas prior to the member’s death,” she said.

Pickering explained how a child can take over Psemas membership.

“The recognition may not exceed a period of 12 months at a time, and further recognition shall not extend beyond the end of the calendar year during which she/he turns the age of 25 years – whether she/he is studying or not. The membership will be terminated at the age of 25,” she said.

She said when the child takes over, she/he is not required to make payments as such payments are normally covered by the Government Institutions Pension Fund.

Pickering said the benefit will be transferred to the next qualifying dependent until all dependents are no longer qualifying as per the conditions mentioned.

Pickering further said the pre-revised regulation created the impression that the requirements are to be met separately for any dependant to be allowed to remain on the scheme after turning 21, which is incorrect.

“The conditions are linked and need to be applied as a collective. The amendment serves to restructure the measures on the registration of dependents in a clearer manner to avoid any misinterpretation,” she said.

The update forms part of a broader effort to reform Psemas and reduce abuse, according to the Ministry of Finance.

In her budget speech, finance minister Ericah Shafudah said the ministry would strengthen oversight measures to improve efficiencies and realise savings on Psemas.

The scheme, which is administered by Methealth Namibia, has been marred by controversies.

In 2021, The Namibian reported that the finance ministry identified a list of 84 doctors accused of stealing millions of dollars through the government’s medical aid scheme.

The ministry instituted civil action, and at least N$13 million was paid back to the state as some doctors are allegedly rushing to avoid charges.

In 2023 it was reported that Psemas recovered N$47 million in fraudulent claims.

For the 2025/26 financial year, Psemas has been allocated N$3.62 billion up from N$3 billion the previous year.

Economist Josef Sheehama says the government’s new amendments have a positive effect on the public services personnel rule for medical aid schemes.

“Given the current high cost of healthcare and the difficulties dependants experience when the primary member dies, this change is essential,” he says.

Sheehama says this would ensure benefits are transferred to another dependant when the current primary member reaches the legal age limit.

He says dependants can now rest easy knowing they have a safety net in case of illness or injury, even if the main member has died.

He believes this would enhance the nation’s economy, because productive individuals are healthier.

Public policy analyst Marius Kudumo says the government should take financial sustainability into account.

“Perhaps it is time to review the contribution formula of government and staff members to Psemas in case there are future risks concerning sustainability,” he says.

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