Busa to engage with state on NHI

Business Unity SA (Busa) is to set up a formal mechanism for engaging with the health department on its plans for universal health coverage, it announced on Wednesday.

The government is driving through reforms aimed at achieving universal health coverage, which it calls National Health Insurance (NHI). The first piece of enabling legislation for NHI was tabled in parliament on August 8, triggering such negative investor sentiment that key health stocks shed R14bn of their value within three days.

The bill proposes the establishment of a central NHI fund that will buy services for the entire population from publicand private-sector providers, and creates uncertainty about the role of medical schemes.

Busa’s concerns about NHI extend beyond investor sentiment as its members are directly and indirectly affected by any changes to the health system. Employers play a significant role in their workers’ access to health care, either by subsidising medical scheme contributions, or by providing health services.

And productivity is affected by the health of their workforce, whether it depends on public or private health-care providers.

Busa met health minister Zweli Mkhize last Wednesday, and he agreed to its proposal to establish a five-member team from each side to engage on the proposed new system.

“The discussion began with a common understanding that the current health-care system is inequitable and unsustainable. There was no dispute that universal health coverage should be realised through active co-operation between the public and private health-care sectors and therefore Busa wishes to express support for the NHI in principle,” Busa said in a joint statement issued with the health minister.

“This is a positive departure from historically hostile publicprivate relations. As a sector, we are already showing signs of maturity and cohesion, which is very encouraging,” said Mkhize.

Stavros Nicolaou, Aspen Pharmacare’s executive for strategic trade, said Busa planned to ask parliament for a six-week extension on the public comment period for the NHI Bill. Parliament called for written submissions on the bill on August 30 and gave interested parties until October 11 to do so.

The nonprofit Organisation Undoing Tax Abuse (Outa) said the deadline was too short and had written to parliament asking for a 90-day comment period.

Outa said the government’s NHI policy had been developed over a decade and should not be rushed.

“It is our hope that the extension of the deadline will be granted so that organised civil society will have more time to develop solid, well-researched and co-ordinated written input,” Outa’s executive director for policy, Heinrich Volmink, said.

THE DISCUSSION BEGAN WITH A COMMON UNDERSTANDING THAT THE HEALTHCARE SYSTEM IS INEQUITABLE