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Is the NHI Bill economically viable?

Sameera Casmod | sameerac@radioislam.co.za
11 May 2024 | 22:41 SAST
2-minute read

Image: Harvard Business School

The National Health Insurance (NHI) Bill is likely to be signed by President Cyril Ramaphosa before the 2024 general election on May 29, reports indicate.

The proposed healthcare reform aims to create one pool of healthcare funding to provide universal access to quality health care for all South Africans.

This sounds extremely good on paper, but the bill has sparked widespread debate. Touted as a solution to our nation’s healthcare problems, the bill aims to dismantle the existing two-tier system of public and private healthcare.

However, despite being in the news for quite some time, the bill has not been signed into law.

Speaking on Radio Islam International, Dr Angelique Du Toit clarified that the NHI primarily concerns the allocation of funds, rather than outlining the services it will render.

While acknowledging the need for healthcare reform, she expressed concerns about the bill’s economic viability. With current estimates of required funding at R 600 billion annually, questions loom over how the government intends to raise these funds without burdening taxpayers excessively.

The delay in the President’s endorsement is attributed to the monumental financial implications and the lack of clarity on how the allocated funds will be utilised.

Dr Du Toit emphasised the need for transparency regarding the utilisation of funds and voiced scepticism about the bill’s potential to address the systemic issues plaguing South Africa’s healthcare sector.

“There’s not enough money to employ doctors, nurses, so the HR component in the public sector is a huge problem,” Dr Du Toit said.

Despite being championed as a panacea by the ruling African National Congress (ANC), doubts persist about the NHI’s practical feasibility and effectiveness.

Dr Angelique discussed the importance of addressing the root causes of healthcare deficiencies, such as the shortage of healthcare professionals and inadequate infrastructure, before implementing sweeping reforms.

“Currently, it is the quality of services, or the lack thereof, that’s a huge problem. So more money in the system is not going to address that problem. We need to address it at grass-roots levels, and there is no indication, currently, that government is busy addressing that,” Dr Du Toit said.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat here.

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