WHITHER NHI?: Summary of views on the proposed health funding model presented to Parliament

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Parliament recently concluded public hearings on the NHI Bill. This article is the first in a series which will provide expert analysis of different submissions made on different aspects of the bill. It examines the views that were presented on the financing proposals in the bill.

pointed out that the increased taxation required to shift the R212-billion currently spent by nine million South Africans on medical aid cover from “private” to “public” is unlikely to be feasible. While the removal of medical tax credits would release funding of R26-billion to R29-billion, the remainder of the shortfall that would need to be funded through increased taxation would still be very substantial.

The DA went on to recommend that “The Department of Health should focus on fixing governance and management structures to increase efficiency and accountability of the public healthcare system before considering an NHI”. The choice of a financing model capable of supporting the proposed NHI reforms is critical to the success of the whole NHI initiative, but there were strongly divergent views on the viability of shifting from the current funding model to the proposed public-dominant funding model, for which little tangible evidence or detail had been made available.

 

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