NHI to cost R125bn by next year

NHI to cost R125bn by next year

2011-08-11 11:08

Pretoria - South Africa’s proposed National Health Insurance (NHI) programme, aimed at giving greater access to healthcare for the country’s poor, will require R125bn in 2012 and R214bn by 2020, according to a government policy paper released on Thursday.

The NHI, currently being discussed by the government and other parties in South Africa’s healthcare system, will require R255bn by 2025, the paper said.

“The goal is to try and finance healthcare for everybody,” Health Minister Aaron Motsoaledi told reporters at a briefing.

The government is auditing the country's health facilities in preparation for the piloting of the NHI Motsoaledi said.

The pilot would take place in 10 selected districts.

It would help the department finalise the design of service benefits, how the population would be covered and how the service would be delivered.

The NHI aims to give all people access to a certain standard of health care, regardless of their income.

People would not have to make contributions to the NHI yet, said Motsoaledi.

He said a conditional grant would be made in the 2012 budget to fund the pilot project.

He said the selection of districts for the first five years of the pilot would be based on the results of the audits.

The factors which would be taken into account included a district's health profile, demographics, income levels and other social factors impacting on health.

Motsoaledi said that, in the next five years, the government intended strengthening the management of health facilities and health districts, improving quality, developing infrastructure and establishing the NHI fund.

He said it was soon to say whether the government would do away with government medical aids in the next 14 years.

He re-affirmed the government's commitment to appoint the right people in the right positions to ensure there was no abuse of the system.

"We will start with management," he said, adding that a plan would be detailed in a Green Paper to be made public on Friday. 

  • Pickle - 2011-08-11 11:15

    And there are cancer patients being refused treatment because YOU the ANC cannot pay your bills? What a disgrace. How can you even possibly think that NHI will better the situation?

      Tolerant - 2011-08-11 14:53

      Some places even run out of Panado, some clinics only have Panado.

  • Obama Bin Laden - 2011-08-11 11:16

    Another tax burden for the imperialists to carry

  • The_Realist - 2011-08-11 11:16

    this is probably 1/10th of the actual cost, just like the 'ums' deal & gautrain scams!

  • Sharkie - 2011-08-11 11:21

    and there is the problem with asking 15% of the country to pay for the other 85%

      frans.visserdsb - 2011-08-11 14:24

      it is way less than 15%... SA has 50 million people. only 8.5 million are employed in the formal sector. only 5.9 million pay tax. 11.8%. However, here is the clincher.... of the 5.9 million, only 9.4 % earns over R400k a year, and this group of 550 000 people (1.1% of the population) contribute 54% of the Personal income tax collected.... and PIT makes up 34% of the government revenue...scary!!!

  • Faahim - 2011-08-11 11:21

    And who will be paying for this?, As long as BEE and the Unions have influence, then my friend we are screwed! Good idea, however bad human capital!

  • jakkals - 2011-08-11 11:21

    Why do I keep thinking that some fat cats are purring with the NHI's implementation?

  • Sharkie - 2011-08-11 11:22

    do the maths please deal minister - you cannot expect us to pay for so many people - it's just NOT possible.

  • stofsuier - 2011-08-11 11:23

    It will fail due to corruption and then that will be another large amount of money gone missing or spent on cars and houses for the people running it.

  • Bilbo - 2011-08-11 11:24

    what a joke...

  • bar-one - 2011-08-11 11:27

    Yeah right - all they want is to create one more tax they can plunder from. They cannot create only consume

  • MC5 - 2011-08-11 11:27

    And we just know who will foot the bill......

  • Dave - 2011-08-11 11:27

    why just not get your current system working first before you have all these fancy ideas?

  • JosephSoape - 2011-08-11 11:30

    WOW. That's only 6-odd percent of GDP. It's so cheap - lets have TWO. Given that government collects about 45% of GDP as taxes (at present, before we face any increases for this most excellent idea - note sarcasm). That means government is going to spend some 14% of ALL its revenues on health benefits.

  • Deon - 2011-08-11 11:33

    NHI, the new Arms Deal.

  • James McFarlane - 2011-08-11 11:34

    Can you imagine how many billions of this money will be siphoned off by corrupt officials in cahoots with corrupt "service" providers, suppliers etc. They must be rubbing their hands and licking their lips in anticipation.

  • York Hunt - 2011-08-11 11:37

    Ah, Karl Marx would be so proud!

  • crocoros - 2011-08-11 11:39

    If the hosiptals are being run into the ground now, what difference is 125bn of the taxpayers money going to make? Why must the taxpayers always bail out the incompetence of the government? How is it going to benefit us if the hospitals are being run by incompetent adminstrators who earn huge salaries and they do not have the proper qualification. We as taxpayers must now stand up and demand that the government iether shape up or ship out. The DA is the best people to run the country.

  • The Captain - 2011-08-11 11:41

    Hey but I am all in favour of healthcare for all - and we all know that here is a but coming - but if the hospital administators cant run the hospitals correctly then we can throw as much money at the problem as we want and nothing will happen. The poor will still suffer and the rich will get richer ( through unregualted tenders). Rather get the basics right instead of trying to buy votes for the next election. sometimes the correct thing to do is not the most comfortable thing to do.

      Smartie - 2011-08-11 15:29

      I concur. Just like a child will not be promoted to the next grade if he doesn't meet the requirements, we do not meet the requirements to advance to such luxuries. Cos we can't get the basics right.We are not yet compenent. Maybe cos most of the people up there re NYC themselves.

  • george60 - 2011-08-11 11:41

    Shame another failure will be borne, from where will the medical staff comes from? The current health system is a failure, patients are turned away, no reasons are given. In the meantime the suppliers are not getting paid? As long as incompentence rules over compentence you will have failures. ANC swallow your pride and admit you cannot rule this country without qualified workers.

  • Dal68 - 2011-08-11 11:42

    This is a gr8 opportunity for the government to enrich themselves beyond every expectation they ever had!

  • Henni Apple - 2011-08-11 11:43

    serious where is the money coming from?

      York Hunt - 2011-08-11 14:20

      They are going to borrow the money from International Banksters (at compound interest), then steal a large portion of it for themselves and then have the SA taxpayer foot the bill! Hey, it worked for the Arms Deal - why not do it again?

  • Zeus11 - 2011-08-11 11:51

    Where is this money going to come from?

      York Hunt - 2011-08-11 14:19

      They are going to borrow the money from International Banksters (at compound interest), then steal a large portion of it for themselves and then have the SA taxpayer foot the bill! Hey, it worked for the Arms Deal - why not do it again?

      Tolerant - 2011-08-11 14:51

      It seems as if the employers will have to pay most of it.

  • dave_23 - 2011-08-11 11:52

    This will destroy our economy, this will be the straw that breaks the camel's back. Taxpayers are already stretched, the global economy is in a major recession, and even relatively wealthy and robust Europe and the US are running into major economic catastrophes right now because of the false belief that you can just tax away and implement universal healthcare. If you want to improve healthcare why not start by focusing on improving the quality of management at state hospitals, and improving the ambulance and transport services to allow people in rural areas transport to the state hospitals instead of the absurd goal, that no country has ever tried, of trying to pepper the whole country with doctors?

  • dave_23 - 2011-08-11 11:53

    Some quick back of the envelope calculations show that the average middle class tax-paying family will have to pay in between R1500 and R2000 per month extra to fund this. It. Is. Impossible. That is really stretching things to breaking point.

  • G4E - 2011-08-11 11:54

    Socialism in disguise? Or the watered down dole? Those who work and pay tax will fund those who don't work (but rather strike)but want social benefits such as medical care. I don't have medical aid, because I work for myself, but I don't expect others to pay for it.

      York Hunt - 2011-08-11 14:21

      More like blatant Socialism

  • grant.abbott1 - 2011-08-11 11:55

    What I'm not understanding is why government doesn't take half that amount and spend it on upgrading the current public hospial infrastructure.

  • adam - 2011-08-11 11:56

    I still cannot believe the ways that government wastes money

  • Thabo Matwabeng - 2011-08-11 12:04

    Public healthcare is currently pretty much for free. The amounts payable for public helathcare in South Africa are extremely low by all standards. NHI is a political solution that was forced into policy by COSATU for the Polokwane conference support. It is an unworkable solution that does not address the underlying issues of mismamangent and apathy of healthcare workers to the plight of the patients. Tax paying South Africans who pay private medical aid will now be taxed even more for a solution that has offers no promises of actually fixing the healthcare situation in the country. The only thing it will achive is put more money under centralised government control while the policies and processes to effectively manage that money are still lacking and the political will to prosecute those who continuously steal from us is still lacking. In a few year's time NHI will be the next worst decision by the ANC government, after the Arms Deal. Mark my words.

      frans.visserdsb - 2011-08-11 14:16

      I agree with you Thabo - yet another burden on the everdiminishing pool of taxpayers...lol - is this not nationalisation in reverse? The Public health care is dreadfull, and in order to give poor people access to decent healthcare they introduce a NHI which will enable them to use the private hospitals? Why not put their money where there mouth is and fix the public health sector instead?

  • Me - 2011-08-11 12:06

    why must we that we pay for those that don't want to work mainly the druggies and the self inflected aids people.before the anc came to power we never had any of this sh*t

  • Pk007 - 2011-08-11 12:07

    How is that possible with only R600 billion in taxes collected each year, 58% of which go to pay government salaries ?

  • Pixie1984 - 2011-08-11 12:07

    with money from where? trying to tax us out of house and home!

  • Met - 2011-08-11 12:09

    Yet another disaster in the making- concocted by the corrupt cadres of the ANC. Someone is going to make a lot of money out of this, but I doubt it if it will be the medical service providers.More likely the"politicians and administrators" Read elsewhere about the disasters caused by the "administration"

  • Stevie - 2011-08-11 12:10

    Whilst I am in favour of health care that is in reach of all citizens, as this is surely a basic human right, I struggle to see how such a burden can be underwritten by such a small already overburdened tax base. This program is sure to require a further borrowing for our already deeply endebited nation?

  • Doug - 2011-08-11 12:12

    Does anyone else feel TOTALLY helpless by the chain of events and corruption that is destroying this country? Everyday the newspaper headlines talk about another scam, more corruption, lack of discipline and total bloody anarchy. The sad thing is that the people are too scared and stupid to ask for change and the government does nothing but steal more and more. People are running institutions without qualifications, but because their brother or sister is connected. How can you run a hospital when you cant add? Zuma is like the loch ness monster, spoken about, but never seen... Useless... This democracy is heading in one direction - zimbabwe part 2 and the ANC supporters don't give a damn, just as long as the government keeps promising them pie in the sky.. talk about lemmings...

      Tlalane - 2011-08-11 14:23

      I agree with you, we migth us change to Zimbabwe South. GT

  • Zip23 - 2011-08-11 12:14


  • ExExx - 2011-08-11 12:17

    More money for tha pockets, look at the current state run hospitals

  • Welleducated - 2011-08-11 12:21

    “The goal is to try and finance healthcare for everybody (in government)” Health Minister Aaron Motsoaledi told reporters at a briefing.

  • Netherlands - 2011-08-11 12:22

    AYE AYE AYE.... EINA! Poor working class.... once again footing the bill for the UN-EMPLOYED AND USELESS.... Have's paying for the HAVE-NOT'S!!!! And ALL the Zimbo's, Nigerians, Malawians, Mozambiquan's, Namibians, hell man...WHOLE OF AFRICA!!! Will Mugarbage also qualify for med treatment in SA???

  • Frikkadel - 2011-08-11 12:26

    SERIOUSLY??? That R125 000 000 000 will be looted and pillaged within 2 years!!! Who has to foot the bill???

  • Jo - 2011-08-11 12:27

    No, Mr Motsoaledi... The goal is for taxpayers to finance healthcare for everybody.

  • Frikkadel - 2011-08-11 12:27

    Seriously??? That R125 000 000 000 will be looted and pillaged within 2 years!!! Who has to foot the bill??? Yes the underpaid, OVERTAXED, minority!!!

  • Frikkadel - 2011-08-11 12:28

    Seriously??? That R125 000 000 000 will be looted and pillaged within 2 years!!! Who has to foot the bill??? Yes the underpaid, OVERTAXED, minority!!!

  • Met - 2011-08-11 12:32

    I note that the moderator or is it censor, is on duty

      Met - 2011-08-11 12:33

      Or is it an ANC sympathiser?

  • RIAAN - 2011-08-11 12:34

    Once again the ANC leaders can't compriend the vast amount of money they are talking about.They should rather tell their people to have less children. The SA economy can not carry 40mil people with the rate the state coffers are being plundered

  • Met - 2011-08-11 12:35

    I note that the moderator or is it censor, is on duty

      Met - 2011-08-11 12:35

      Obviously an ANC cadre

  • mac-sdi - 2011-08-11 12:36

    Mh.! the price we have to pay. it would take a fraction to fix public health. educate, train, build and staff RSA hospitals...

  • Eligos - 2011-08-11 12:37

    When this talking head gets the administration of existing hospitals in order and stops cadre deployment and the resulting incompetency, then maybe taxpayers will take these suggestions seriously.

  • abracadaver - 2011-08-11 12:40

    Yep, yet another tax on a struggling middle class...banana republic here we come, think I need to become a politician, they are the only ones that will be able to afford to live in SA soon

  • AJ - 2011-08-11 12:48

    You'll be lucky to see 50 billion rand value for that 125 billion.

  • Duracel - 2011-08-11 12:55

    National Health Insurance. Where did we come up with this? National Health Services in the UK is in shambles. The UK does not have nearly the unemployment figure that SA has. Funding by government is easier to do if the majority of the population is contributing to the national tax coffers. Then there are a ½ dozen other European countries who also have National Health but they are not fairing any better and once again the unemployment is nowhere near South Africa’s. Thus the taxpayer in SA will probably be funding the NHI by a levy on payrolls for every one lucky enough to have a job and having to pay tax. How is it possible that ±30% of our employed population will be paying for the myriads of unemployed out there. Not even counting the illegal’s in SA. Will we also start to endorse visitors and work permits with “Not eligible to access public funds” as my recent UK visa was endorsed. Will SA start to require a visa/permit for every person entering the country and not just arriving at the airport and getting a simple little stamp allowing free reign. Then there is the state of government hospitals. Well … enough said. I will keep my private Medical Aid thank you.

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