By: Natasha Archary
President Cyril Ramaphosa will on Wednesday, 15 May publicly sign into law the National Health Insurance Bill.
The NHI Bill which was submitted to Parliament in 2019 by Health minister, Dr. Joe Phaahla aims to direct transformation of South Africa’s health care system to achieve universal coverage for health services, and overcome critical socio-economic imbalances.
R1.4 billion has been budgeted for the National Health Insurance (NHI)
Over the Medium Term Expenditure Framework, the health sector is projected to receive an allocation of R848 billion, of which at least R1.4 billion is earmarked for the National Health Insurance (NHI).
The NHI, is the fund from which the government which will buy healthcare services for South Africans from healthcare providers both in the public and private sectors.
According to government the NHI Bill will benefit South Africans in the following ways:
- The fund will cover South Africans of all races, rich or poor, who are legal long-term residents
- There will be one pool of healthcare funding for private and public healthcare providers
- Cost of healthcare, which is currenly the most expensive in the world will be reduced
- When people visit healthcare facilities, there will be no fees charges because the NHI fund will cover the costs of people’s medical care in the same way that medical aid does for their members
- NHI will narrow the gap between the rich and poor in terms of standards of healthcare
- South Africans will no longer be required to contribute directly to a medical health scheme to get quality healthcare
The NHI will be funded by general taxes, contributions from people earning above a set amount, and monthly contributions made by the employees to the fund.
Employers will assist the NHI Fund by ensuring that their workers’ contributions to the NHI Fund are collected and submitted in a similar way to UIF contributions.
President Cyril Ramaphosa will today, publicly sign into law the National Health Insurance Bill which directs transformation of South Africa’s health care system to achieve universal coverage for health services and, through this, overcome critical socio-economic imbalances#NHI pic.twitter.com/IDuQJ7jQQ9
— South African Government (@GovernmentZA) May 15, 2024
Consumers who are with private medical schemes are, understandably, unhappy with the update. Political parties, such as the Democratic Alliance (DA) has also criticised government pushing the NHI Bill forward.
The DA will address media on the steps that the party will be taking to stop the Bill.
“This Bill in its current form does not meet constitutional muster. More critically, it will not solve the widespread public health crisis in South Africa. The signing of this Bill despite resounding opposition to it; is nothing but an electioneering tool by the uncaring ANC.
The DA will outline the substantive flaws in the Bill for the healthcare system; the botched parliamentary process and the next legal steps to be followed.”
The DA is against the NHI Bill being passed
Also read: SA’s unemployment rate at 32.9% in the first quarter of the year
