'State attacking private healthcare'
The government is seeking to replace private healthcare with National Health Insurance (NHI), the health policy unit of the Free Market Foundation said.
"The government is slowly but surely aiming to destroy private healthcare [and] lay the foundation for NHI," the unit's executive director Jason Urbach said in Johannesburg.
He said the Treasury's announcement in March to restrict the availability of "gap" cover medical insurance and hospital income plans was a systemic attack on private healthcare.
"If they are adopted in the current form... they will take us down the road of socialised healthcare."
Urbach believed the NHI was not particularly good use of scarce resources.
Government legislation such as the 1998 Medical Schemes Act (MSA) had not proven effective in increasing healthcare cover in South Africa.
"The proportions of South Africans covered by medical schemes remains static."
He described the government's behaviour as schizophrenic, since legislation like the MSA had caused the price of contributions to rise.
The MSA introduced four major changes within in the industry: open enrolment, community rating, statutory solvency requirements, and prescribed minimum benefits.
Urbach said each change increased the cost of contributions for medical scheme members.
An alternative was to allow exemptions for the lower-income market. He said "gap" insurance came as a result of government restrictions. Individuals should, as far as possible, be responsible for their own lives.

Comments
Mrazane
ANC should realise that they have messed up under Zuma's leadership. They can't run hospitals and the ones that are being efficiently run they want to effectively run down through NHI, why can't they leave what is working and focus on what is not working and in this instance the public health system has failed it only works for you if you have a mild headache and moderate hypertension, anything else...woza kuJesu cos government hospitals can't help you. Lord have mercy on this nation!Report Abuse
Bolander
Why cant private and NHI run concurrently? Unfortunately i dont have any faith in government run enterprises - i dont even need to give examples here - the current state hospitals are a prime example of disfunctionality - problem is you will have a few taxpayers paying for the majority's health service and then the government expect these tax payers to be satisfied with getting in line behind non-taxpayers in the state hospital queue - I would rather support some kind of initiate that investigates the exhorbitantly high costs of private medical tariffs - or then at least some kind of subsidy into the private healthcare so that the majority of people in sa can afford private healthcare - this will bring back all our brilliant doctors that has left the country - NHI will see a further decline in health practitioners in our country ...Report Abuse
MisterGP
These stupid f***ks really want to destroy everything! But hey, that's the only thing they are good at.Report Abuse
Bhali
Not all public hospitals are bad. Besides, there are many people who cannot afford private health care, so well done Motswaledi. You are in government because of poor people, so do whats best for them. This rich people with over priced medical aids who keeps on voting DA must make peace with that cos NHI is coming.......and they cannt stop it now. Unlike e-Tolls, proper procedures were followed here.Report Abuse
Maratachelete
I get the health care insurance thing,but will it be sustainable in the long haul,and how will it benefit people living in rural parts of the country.Report Abuse
MAESTRO11
The NHI makes a lot of sense, but there are challenges ahead of us. In a long run even those who have no health insurance will get the best services. Our institution is one of piloting project and we will get a lot of specialists soon. Of cause they will have to be paid competitive rates, however given the situation they will only be in on certain days and hours. Personally I think the minister of Health is addressing the real issues unlike his boss.Report Abuse
David-
Government should keep its hands to itself and get its own house in order.Bhali It can’t even run its own hospitals, for god’s sake
I will happily pay my monthly medical Aid it is expensive (R2600 for wife and two kids low plan) yet I know that they will get world class treatment if it is needed.
There should be some investigation into medical aid prices, but healthcare is expensive, especially for specialized treatments and operations.
My father in law who is not on medical aid recently when to have cataracts removed, on the day he was booked in to have the op done they cancelled it. The reason, the hospitals only sterilising unit was broken so they had to cancel every single op, two months later still not working. If this was a private hospital it would have been fixed or replaced within a day.
All politicians should stop using private hospitals and doctors; make them go to state hospitals and watch how fast things are improved.
I feel for those that are subjected to state hospitals, as I have seen the conditions that they must endure and it does need to be drastically improved.
How does government plan to work this as the private hospitals will be swamped as everybody would rather go there than the state hospitals
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