The National Health Insurance Bill that aims to reform the South African health system is irrational as it stands now, according to the CEO of Discovery Limited.
Adrian Gore said that in its current form, the bill may destabilise the tax base and would undoubtedly need the help of the private sector.
Last week SA’s path towards universal health care took a major leap forward when the National Council of Provinces (NCOP) voted in favour of the National Health Insurance (NHI) Bill.
Earlier this year, Parliament passed the Bill.
The bill is now being referred to President Cyril Ramaphosa. He has the power to sign it into law or send it back for further amendment.
The NHI Bill will lead to a ban on the private sector covering specific treatment that is already covered by the national cover.
According to Gore, the current structure of the bill does not adequately address the funding of the bill. In his opinion, the NHI is not sufficiently funded to be successful.
“The tragedy of our country is a narrow tax base with high levels of unemployment. “You don’t have sufficient money to buy comprehensive benefits for all South Africans,” Gore said on Monday.
It is estimated that the NHI will require around R500 billion a year. Government has yet to explain how and where they will get this funding.
According to Discovery, the NHI will lead to a 70% cut in health services for those who pay taxes.
Gore said that the bill does not seem “plausible” and it could “seriously destabilise the taxpayers that actually are funding the NHI”.
MORE OPPOSITION
There are a number of detractors to the bill.
AfriForum said it was ready to wage its “fiercest battle yet” against the bill, while the Western Cape Government - the only province that did not back the bill - has called for the NHI Bill to be sent back to the National Assembly for more consideration.
Provincial Health MEC, Dr Nomafrench Mbombo said that the process had been blemished by insufficient consultation.
“It's about the centralisation of the funds, plus cutting the equitable share almost by 34% to the provinces. Number two, it leaves as many people behind while it's supposed to achieve universal coverage - it won't,” Mbombo said.
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