By: Natasha Archary

Breaking down how the National Health Insurance (NHI) will work, Dr Katlego Mothudi joins Gugulethu Mfuphi on Kaya Biz.
With President Cyril Ramaphosa signing the NHI Bill into law on Wednesday, 15 May there has been public outcry from unions, the private healthcare sector and South Africans who fear the collapse of the healthcare system in the country.
While Ramaphosa describes the bill as the “Rolls Royce” of healthcare for its promise to provide universal healthcare to all, many are still confused as to how the bill will work.
Dr Mothudi, Managing Director at the Board of Healthcare Funders says the principles which universal health has been highlighted is positive, however there’s still a long way to go before things turn around.
“The NHI addresses 1 of 6 pillars that the World Health Organisation (WHO) recommends for healthcare forms and there’s the financial part which NHI looks at.
Primarily, other areas like leadership and governance also needs to be looked at, which is why we are harping on what powers those who are leading this project have.
Issues of governance become very important, this is topical in a country where we do face a challenge of corruption and untoward activities in terms of management of resources.”
Dr Mothudi, Managing Director at the Board of Healthcare Funders
How the NHI will work
Shortly after the President signed the NHI Bill into law, Health Minister Joe Phaahla addressed media explaining how the fund will work.
According to Phaahla, funding for the NHI will come from government but it cannot be sourced from the fiscus and so a plan will be made.
Phaahla said more consultations with National Treasury will need to take place in order to work out a model.
South Africans should know that the NHI will be implemented in phases and the full benefits of this scheme will only be fully realized in 2030.
Between now and 2026, NHI institutions will be established to enure that those seeking healthcare will receive access at no cost.
Regardless of how optimistic government is, the South African Health Professionals Collaboration (SAHPC) believes signing the National Health Insurance (NHI) Bill into law this week will leave the healthcare sector worse off.
The SAHPC as well as the Democratic Alliance (DA) is opposed to the bill and will be launching legal action against the NHI.
Siviwe Gwarube, DA Shadow Minister of Health says the NHI Bill will nationalise healthcare and create additional tax burden for South Africans.
Listen to the conversation on Kaya Biz:
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