Understanding the National Health Insurance (NHI) plan
“Healthcare should be fair, accessible and affordable to all”. This is the succinct and basic premise of the National Health Insurance (NHI) plan that may soon be available for all South Africans.
Sounds good, right? Who doesn’t want affordable and accessible healthcare?
So, let’s try to understand the details and exactly how this plan will help you.
Key points
Why the NHI?
According to the government, South Africa has been working on making healthcare fairer and more affordable for everyone since it became a democracy.
The problem:
Healthcare is still too complicated and expensive and it's not reaching everyone who needs it.
The big idea:
To fix the healthcare problem, the government created a plan called the National Health Insurance (NHI). It's like a big pool of money that the government will use to pay for healthcare for everyone.
Making healthcare cheaper:
With NHI, healthcare will become more affordable for everyone because the government will cover the costs. This means that you won't have to pay when you go to the doctor or hospital.
What does this mean for me?
The good news is that, according to the government’s rollout plan, “This health insurance will cover every South African, employed or unemployed, earning low income or high income. The socioeconomic status of members of the public will not influence the type of healthcare you receive but it will be influenced by the condition of your health. There will be no limited benefits because of the salary you earn or because you are unemployed.”
Where does the money for the NHI come from?
The NHI Fund will receive most of its funding from general taxes. This means that every person in South Africa will contribute to the fund through various taxes. People with low incomes won't have to make direct payments to the NHI Fund. However, people who earn above a certain threshold will legally have to contribute.
Monthly contributions from employees to the fund will generally be less than what they would pay for medical aid, while higher-income earners will contribute more directly to the NHI. Employers will play a role in collecting and submitting their workers' NHI contributions, similar to how they handle UIF contributions, and they will match their employees' contributions to the NHI Fund.
What’s covered in the plan?
NHI aims to provide all South Africans and legal residents with access to a wide range of healthcare services, from basic to specialised care.
Under NHI, no-one can be turned away or asked to pay for treatment unless they haven't followed the proper referral process, starting with their local clinic or GP.
Refugees will also be covered as per the Refugees Act and a special fund will ensure basic healthcare coverage.
What’s next?
No firm dates have been given yet as to when the plan will roll out but President Ramaphosa recently said that it will happen soon. “After many years of research, debate and preparation, South Africa is getting ready to implement the National Health Insurance. The NHI bill will be implemented incrementally, responsibly and sustainably,” he said in February this year.
References:
- https://www.health.gov.za/nhi/
- https://www.gov.za/about-government/government-programmes/national-health-insurance
- https://www.hst.org.za/publications/NonHST/Understanding%20National%20Health%20Insurance.pdf
- https://www.reuters.com/world/africa/south-africas-ramaphosa-says-he-will-sign-national-health-insurance-bill
Disclaimer
This article is for informational purposes only. Always check with your doctor or medical practitioner about any health concerns, before embarking on any fitness or nutrition programme, or using any medication.