National Health Insurance programme will require 125 billion rand - in the year 2012 alone
South Africa’s proposed National Health Insurance programme, aimed at giving greater access to healthcare for the country’s poor, will require 125 billion rand ($17,3 billion) in 2012 and 214 billion rand by 2020, according to a government policy paper released on Thursday.
The NHI, currently being discussed by the government and other parties in South Africa’s healtcare system, will require 255 billion rand by 2025, the paper said.
“The goal is to try and finance healthcare for everybody,” Health Minister Aaron Motsoaledi told reporters at a briefing.
South Africa is spending about 8,5% of GDP on public healthcare but the standard of service is poor.
Finance Minister Pravin Gordhan said on Thursday that South Africa will fund the proposed National Health Insurance programme 'through the fiscus, employers’ contributions and other funding mechanisms' and the government does not want the plan to increase the burden on taxpayers.
“There is money in the systems and there may be extra money required,” Gordhan told reporters at a government briefing.
Previously, the government has said it is investigating how the NHI would be funded and among the options were surcharges on taxable income, and increases in value added tax (VAT). Analysts expected the main source of revenue to come from general taxation.
Contributors to private healthcare schemes are concerned that the NHI would force them to seek treatment at poorly run and overcrowded state facilities.
The policy will be published in the official government newspaper on Friday, kicking off a three-month consultation process with industry stakeholders.
Health industry officials said many private healthcare providers were not opposed to the NHI.
“Private healthcare professionals are not opposed to the NHI because it will bring more business to them, but they want to see what the paper sets out,” said Dr Norman Mabasa president of the South African Medical Association.
“We want to see what government plans to include on the NHI and how it will be implemented.
“We don’t expect the free system to cover everything that private medical offers.”
High cost of planned health scheme
National Health Insurance programme will require 125 billion rand - in the year 2012 alone
South Africa’s proposed National Health Insurance programme, aimed at giving greater access to healthcare for the country’s poor, will require 125 billion rand ($17,3 billion) in 2012 and 214 billion rand by 2020, according to a government policy paper released on Thursday.
The NHI, currently being discussed by the government and other parties in South Africa’s healtcare system, will require 255 billion rand by 2025, the paper said.
“The goal is to try and finance healthcare for everybody,” Health Minister Aaron Motsoaledi told reporters at a briefing.
South Africa is spending about 8,5% of GDP on public healthcare but the standard of service is poor.
Finance Minister Pravin Gordhan said on Thursday that South Africa will fund the proposed National Health Insurance programme 'through the fiscus, employers’ contributions and other funding mechanisms' and the government does not want the plan to increase the burden on taxpayers.
“There is money in the systems and there may be extra money required,” Gordhan told reporters at a government briefing.
Previously, the government has said it is investigating how the NHI would be funded and among the options were surcharges on taxable income, and increases in value added tax (VAT). Analysts expected the main source of revenue to come from general taxation.
Contributors to private healthcare schemes are concerned that the NHI would force them to seek treatment at poorly run and overcrowded state facilities.
The policy will be published in the official government newspaper on Friday, kicking off a three-month consultation process with industry stakeholders.
Health industry officials said many private healthcare providers were not opposed to the NHI.
“Private healthcare professionals are not opposed to the NHI because it will bring more business to them, but they want to see what the paper sets out,” said Dr Norman Mabasa president of the South African Medical Association.
“We want to see what government plans to include on the NHI and how it will be implemented.
“We don’t expect the free system to cover everything that private medical offers.”
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