The healthy way to go

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The healthy way to go

NHI — a healthy way to go? Colin Daniel This article was first published in the 4th quarter edition of Personal Finance magazine. In the face of divided public opinion, the much-touted National Health Insurance NHI system looks set for full implementation in the coming years after the white paper gazetted by Health Minister Dr Aaron Motsoaledi in June The government plans to fully implement NHI by It will be mandatory for every citizen to belong to NHI, and all state medical schemes will be made redundant.

But it is unclear how NHI will affect private medical schemes, although it is likely that smaller schemes will cease to exist. NHI will be implemented through the creation of a single fund that is publicly financed and publicly administered.

The fund will be financed out of general taxes and from payroll and surcharge taxes. The main features of NHI are: It will pay for all healthcare costs on behalf of the population.

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There will be mandatory prepayment of health care, which differs from other modes of payment, such as voluntary prepayment and out-of-pocket payment. This means eliminating various forms of direct payment, such as co-payments. Healthcare providers who want to contract with the NHI Fund will have to comply with these mechanisms.

The Director General of the Department of Health, Precious Matsoso, says the white paper stipulates that, until NHI is fully implemented and mature, the role of medical schemes will not change.

This means that only services not covered by NHI can be offered as cover. The Council for Medical Schemes CMS has announced plans to consolidate the medical schemes industry by dissolving or consolidating small schemes in line with the white paper.

The Department of Health says only 8. Even this, however, is a conservative estimate in light of overly generous future growth estimates provided by the government.

The SAIRR says the white paper disregards the main reasons for the poor performance of the public healthcare system, and this failure results in a skewed diagnosis of the problems in the healthcare sector, which, in turn, results in a skewed assessment of how these problems can be overcome.

Overseas examples of universal healthcare systems In Switzerland, healthcare is universal and is regulated by the Swiss federal law on health insurance. There are no free state-provided health services, but private health insurance is compulsory for all people who live in Switzerland.

The healthy way to go

The government subsidises health care for the poor on a graded basis, with the goal of preventing individuals from spending more than 10 percent of their income on health care.

Hospitals are overwhelmingly public, a large portion of doctors work directly for the state, and citizens contribute to a national insurance plan known as MediSave.This article was first published in the 4th quarter edition of Personal Finance magazine.

The healthy way to go

In the face of divided public opinion, the much-touted National Health Insurance (NHI) system looks. I’m mentally preparing myself for this one.

Because it’s inevitable I’ll receive at least a few heated comments on this post.

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