LETTER: It’s time medical insurers spoke up about NHI
One concern is that much of the revenues raised for the NHI through tax hikes may not be used for the NHI at all
04 September 2023 - 17:15
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There is a more practical way to achieve universal access to health care, says the writer. Picture: 123RF
Recent criticism of the government’s National Health Insurance (NHI) plan by Business Unity SA (Busa) and Business for SA (B4SA), which argue that the huge tax increases required will be unaffordable, must be commended (“Business groups drop NHI tax bombshell”, August 29).
The questions raised by these organisations about the economic viability of the NHI have been raised repeatedly by the Institute of Race Relations too, not least in its parliamentary submissions.
Another concern is that much of the revenues raised for the NHI through tax hikes may not be used for the NHI at all, as “ring-fencing” these monies will require a separate statute, which the National Treasury is reluctant to enact.
Private healthcare would be significantly cheaper — and thus accessible to many more South Africans — were it not for the aggressive state regulation that has significantly pushed up the costs of medical scheme membership since 1998. In addition, if government was willing to allow low-cost medical schemes — available for, say, R200 per adult member per month — as proposed by the Council for Medical Schemes in 2015, some 15-million more South Africans would already have access to private healthcare at the key primary level.
Medical insurers should see this criticism of the NHI by Busa and B4SA as an opportunity for them to also voice their concerns. They have a duty to speak out against the implementation of the NHI, given the significant effect it will have on their members.
Recently, the SA Medical Association, representing more than 12,000 doctors, submitted a petition signed by more than 52,000 medical professionals to the National Council of Provinces urging it to vote against the NHI Bill.
It is rather concerning that medical insurers have not yet voiced their concern on the NHI. The ball is now in their court. The question is simple: will they side with government’s unworkable NHI, or with their members?
Mlondi Mdluli Institute of Race Relations
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: It’s time medical insurers spoke up about NHI
One concern is that much of the revenues raised for the NHI through tax hikes may not be used for the NHI at all
Recent criticism of the government’s National Health Insurance (NHI) plan by Business Unity SA (Busa) and Business for SA (B4SA), which argue that the huge tax increases required will be unaffordable, must be commended (“Business groups drop NHI tax bombshell”, August 29).
The questions raised by these organisations about the economic viability of the NHI have been raised repeatedly by the Institute of Race Relations too, not least in its parliamentary submissions.
Another concern is that much of the revenues raised for the NHI through tax hikes may not be used for the NHI at all, as “ring-fencing” these monies will require a separate statute, which the National Treasury is reluctant to enact.
Private healthcare would be significantly cheaper — and thus accessible to many more South Africans — were it not for the aggressive state regulation that has significantly pushed up the costs of medical scheme membership since 1998. In addition, if government was willing to allow low-cost medical schemes — available for, say, R200 per adult member per month — as proposed by the Council for Medical Schemes in 2015, some 15-million more South Africans would already have access to private healthcare at the key primary level.
Medical insurers should see this criticism of the NHI by Busa and B4SA as an opportunity for them to also voice their concerns. They have a duty to speak out against the implementation of the NHI, given the significant effect it will have on their members.
Recently, the SA Medical Association, representing more than 12,000 doctors, submitted a petition signed by more than 52,000 medical professionals to the National Council of Provinces urging it to vote against the NHI Bill.
It is rather concerning that medical insurers have not yet voiced their concern on the NHI. The ball is now in their court. The question is simple: will they side with government’s unworkable NHI, or with their members?
Mlondi Mdluli
Institute of Race Relations
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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