NHI BY JESSIE TAYLOR
National Health Insurance holds the promise for the transformation of the medical aid sector
A
s the government lobbies to implement the National Health Insurance (NHI), the South African healthcare sector stands to be transformed.The NHI is a fund that aims to give all South Africans access to quality and affordable healthcare – but it also brings the opportunity for transformation within South Africa’s medical aid sector. The fund will cover the healthcare costs of South Africans, regardless of their socio-economic status, which means there will be no fees charged at healthcare facilities. While this may seem similar to the work of medical aid schemes, the NHI has two key differences. Firstly, it will cover every South African, regardless of employment or income level and does not need the individual to opt-in. Secondly, the
type of healthcare provided to each patient will be of the same standard and will be determined by their health condition and not their choice of healthcare plan. This means there will be no limits on benefits. The NHI is expected to keep the cost of healthcare at a reasonable level while compensating healthcare providers fairly. This will see public and private healthcare providers compensated on the same basis and expected to provide the same standard of care. The NHI will be funded through taxes, which will see every South African earning above a certain amount required to contribute towards the fund. This will be administered in the same way as contributions to the Unemployment Insurance Fund. Individuals will be free to continue
48 | Public Sector Leaders | July 2022
their medical scheme membership, but they will not be able to opt out of making contributions to the NHI Fund. A NEW FUTURE FOR MEDICAL AIDS The NHI brings with it many benefits but will require the current medical aid industry to make changes and upgrade its offerings. Because the Government will no longer provide tax subsidies for medical scheme contributions and will accommodate medical aid members within the NHI, it is likely that fewer people will continue their current medical aid memberships. However, it is likely that many people will need a form of additional health insurance to cover healthcare procedures considered cosmetic or non-essential. While the NHI Bill is
