'Pay up for more health cover'

Johannesburg - The Board of Healthcare Funders (BHF) on Friday proposed that government allow those who want medical cover over and above the proposed National Health Insurance (NHI) scheme to continue to make private medical aid contributions.

"It's a matter of choice," said chairperson of the BHF's Regulatory Policy Committee Clarence Mini, comparing the use of top-op cover to pupils attending private schools.

This was in response to a document published on the ANC's website last week, which outlined how the NHI may function.

The document stated all contributions will be pooled in a single fund. This will be administered by government and used to pay for all services by private and public healthcare providers. It also said the medical schemes tax subsidy will be removed and that both employers and employees will make compulsory contributions.

Mini said the proposed top-up cover to be offered by medical schemes would not be as expensive as current medical aid costs, and that it was meant for consumers who were sceptical about the NHI. The cover will also be needed by patients who want services over and above those offered by the NHI.

The BHF said a national health system will eliminate medical schemes' problems relating to different tariffs charged by healthcare providers.

"We have failed as an industry to expand the number of people who are covered [by medical schemes]," said Mini.

Head of research at Kagiso Asset Management Abdul Davids said the BHF proposal is one of many being debated, adding it is premature to assume that any one proposal will be implemented.

"Even though the BHF's proposal is intended to lower the cost of medical aid, it would still be less attractive than an efficiently-administered NHI scheme," concluded Davids.

- Fin24.com