NHI – THE DIVIDEND OF FREEDOM
What is NHI?
NHI is a health financing system that is designed to pool funds to provide access to quality, affordable personal health services for all South Africans based on their health needs, irrespective of their socio- economic status.
The rationale
The Constitution states that access to healthcare is a right. But many people struggle to access this right. People experience long queues in state hospitals as a result of shortage of medical professionals. The distribution of healthcare resources is skewed in favour of the private sector.
The NHI will ensure the equitable distribution of healthcare resources.
Benefits and challenges
South Africans will be able to access health care service in both public and private health facilities without paying at the point of service. Nobody will be turned away from any health facility, both public and private, because he or she does not have medical aid or cash.
People who currently have medical aid will also benefit from NHI. Currently, due to rising costs of medical care, medical aid schemes have introduced several options which exclude a range of cover for the patients. Furthermore, many people exhaust their funds in the scheme as early as June and they are without cover for the rest of the year. In other words, they are covered for as long as they are not sick. Not anymore. NHI will give cover to all, in line with the Ubuntu principle: from each one according to his ability, to each one according to his needs.
What are some of the challenges the NHI will deal with?
Rising costs of health care is forcing medical aid schemes to reduce cover.
Many people who are on medical aid often exhaust their funds in the middle of the year.
They are not covered for the rest of the year, essentially meaning that many people who have medical aid are covered for as long as they are not sick. No more co-payment
NHI will eliminate these problems by creating a social solidarity for quality health care.
Funding
Can the country afford the NHI?
It is inappropriate to attach a price tag to human life. The real question should be – can South Africa continue to deny a large section of its population access to quality health care? Precisely because we have limited resources, we have to pool all the resources together and channel them towards quality health care for all. In other words, we have to be efficient in our utilisation of our collective resources.
Who will pay for NHI
The NHI will get a large amount from general taxes.
Every person earning above a certain amount will be required by law to contribute.
Employers will assist the NHI Fund by ensuring that their workers NHI contributions are collected and submitted, in a similar way as UIF contribution.
Employers will match their employees’ contributions to NHI.
How will NHI work
NHI will provide finance for healthcare services in both private and public facilities;
NHI will not manage hospitals, clinics or practices of GPs, dentists and other health specialists;
A patient will be able to choose any NHI-contracted service provider near to him or her for regular health needs;
Public hospitals and clinics will be made to upgrade their facilities;
Healthcare facilities will only be part of the NHI system if they meet certain standards of care;
Healthcare facilities will have to be accredited by an independent body – the Office of Health Standards Compliance.