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Johannesburg – While details remain sketchy, the local health industry has embraced the ANC’s altered proposal for a national health insurance (NHI) scheme, saying the emphasis on a consultative and phased approach was progressive.
The industry has been nervously waiting for details of the controversial NHI for more than a year.
On Tuesday, the ANC said it wants the NHI implemented from 2012, over a 14-year period.
“We welcome and support the national health insurance because we think our health system needs a major overhaul,” said Heidi Kruger, spokesperson of the Board of Healthcare Funders, an industry representative body.
Discovery Health, SA’s biggest medical scheme, said it views the key aspects of the announcement as positive and pragmatic.
“In particular, we welcome the focus on a progressive and gradual implementation of the proposed health reform, as well as the focus on the most underserved areas during the initial five-year period of the health reform,” said Discovery Holdings [JSE:DSY] CEO Dr. Jonathan Broomberg, in a statement.
“Discovery also strongly supports the apparent emphasis on using the public healthcare system, and the public healthcare budget as the bedrock of the proposed healthcare reform.
“We also strongly support the approach of giving healthcare providers the choice of whether or not to participate in the system, as well as the fact that consumers will be free to continue to purchase medical scheme cover as they have done in the past."
Private hospital group Medi-Clinic Corporation [JSE:MDC] said it welcomes a consultative and phased approach to the implementation of the NHI.
“While we cannot comment on the detail of the plan before it is published, MCSA wishes to contribute positively to the development of a model that will address existing challenges, such as the shortage of doctors and nurses in the country,” said Biren Valodia, chief marketing officer of Medi-Clinic Southern Africa.
“We accept the invitation to participate and look forward to an inclusive process,” said Valodia. “This approach should lead to an effective NHI that is appropriate to South African needs and conditions.”
Dr Zweli Mkhize, premier of KwaZulu-Natal and chairperson of the ANC sub-committee on health, told journalists on Tuesday the NHI is expected to cost a whopping R128bn in its first year, escalating to R376bn in 2025.
“The main source of revenue for the NHI fund will be allocations from general taxation,” Mkhize was quoted at the ANC’s national general council in Durban.
Although the details have not been worked out, there are fears that medical schemes would become redundant as government would most likely administer the fund, or that people would discontinue their medical aid subscriptions once the NHI is in place.
“At this stage it’s not yet clear how it (NHI) will affect medical schemes,” said Dr Peter Breitenbach, a healthcare analyst at Frost & Sullivan.
“Government will probably appoint an independent administrator, or big schemes like Discovery, to manage it.”
Kruger said the BHF has made submissions to government on the role medical schemes could play under the NHI, including administering the NHI benefits and possibly offering top-up or optional additional benefits.
At the body’s conference last month, BHF chairperson Dr Clarence Mini said the proposed model promotes potential growth in membership of medical schemes.
“Public and private providers will be contracted by the NHI Agency at uniform reimbursement levels to service NHI patients,” said Mini.
- Fin24.com
The industry has been nervously waiting for details of the controversial NHI for more than a year.
On Tuesday, the ANC said it wants the NHI implemented from 2012, over a 14-year period.
“We welcome and support the national health insurance because we think our health system needs a major overhaul,” said Heidi Kruger, spokesperson of the Board of Healthcare Funders, an industry representative body.
Discovery Health, SA’s biggest medical scheme, said it views the key aspects of the announcement as positive and pragmatic.
“In particular, we welcome the focus on a progressive and gradual implementation of the proposed health reform, as well as the focus on the most underserved areas during the initial five-year period of the health reform,” said Discovery Holdings [JSE:DSY] CEO Dr. Jonathan Broomberg, in a statement.
“Discovery also strongly supports the apparent emphasis on using the public healthcare system, and the public healthcare budget as the bedrock of the proposed healthcare reform.
“We also strongly support the approach of giving healthcare providers the choice of whether or not to participate in the system, as well as the fact that consumers will be free to continue to purchase medical scheme cover as they have done in the past."
Private hospital group Medi-Clinic Corporation [JSE:MDC] said it welcomes a consultative and phased approach to the implementation of the NHI.
“While we cannot comment on the detail of the plan before it is published, MCSA wishes to contribute positively to the development of a model that will address existing challenges, such as the shortage of doctors and nurses in the country,” said Biren Valodia, chief marketing officer of Medi-Clinic Southern Africa.
“We accept the invitation to participate and look forward to an inclusive process,” said Valodia. “This approach should lead to an effective NHI that is appropriate to South African needs and conditions.”
Dr Zweli Mkhize, premier of KwaZulu-Natal and chairperson of the ANC sub-committee on health, told journalists on Tuesday the NHI is expected to cost a whopping R128bn in its first year, escalating to R376bn in 2025.
“The main source of revenue for the NHI fund will be allocations from general taxation,” Mkhize was quoted at the ANC’s national general council in Durban.
Although the details have not been worked out, there are fears that medical schemes would become redundant as government would most likely administer the fund, or that people would discontinue their medical aid subscriptions once the NHI is in place.
“At this stage it’s not yet clear how it (NHI) will affect medical schemes,” said Dr Peter Breitenbach, a healthcare analyst at Frost & Sullivan.
“Government will probably appoint an independent administrator, or big schemes like Discovery, to manage it.”
Kruger said the BHF has made submissions to government on the role medical schemes could play under the NHI, including administering the NHI benefits and possibly offering top-up or optional additional benefits.
At the body’s conference last month, BHF chairperson Dr Clarence Mini said the proposed model promotes potential growth in membership of medical schemes.
“Public and private providers will be contracted by the NHI Agency at uniform reimbursement levels to service NHI patients,” said Mini.
- Fin24.com
