NHI Update
The National Health Insurance (NHI) Bill was signed into law by President Cyril Ramaphosa on 15 May 2024. While we understand that the amount and content of recent headlines might worry you, we can assure you that there is no immediate change for you. Full implementation of the Act is a complex process that will occur incrementally over many years.
Key points:
- The objective of the NHI Act is to ensure universal access to quality healthcare services for all citizens, aligning with international standards and the Constitution.
- The NHI Act has not been promulgated yet and existing laws still apply.
- Medical Scheme members' benefits and access to healthcare services in South Africa remain unchanged during the transitional period, which will take several years.
Concerns over constitutionality and funding
While the private health care sector in South Africa supports the principle of universal healthcare, it is opposed to the way the NHI Act is being introduced, the uncertainty about the NHI rollout, and crucially, how it is to be funded. The private sector remains cautious about funding mechanisms for the NHI and striking the right balance; implementing the NHI without disrupting existing healthcare structures, is a delicate task. NHI funding requires significant tax policy changes. Additionally, economic prospects play a pivotal role in determining the rollout timeline and success of the NHI. The NHI Act is likely to be constitutionally challenged by several organisations.
Next steps for the NHI
After being signed into law, the NHI Act requires relevant sections to be promulgated in order for the NHI Fund to be established as an autonomous public entity. Furthermore, the Government needs to continue their work on strengthening the existing health care system, development of NHI regulations and amendments to several other regulations and legislation, as well as establishing institutions to form the foundation for a fully functional fund. The first health care services that are envisioned to be provided by the NHI Fund are for vulnerable groups. Beyond these services, it is not yet determined what the NHI will cover in the future.
The role of medical aids
Medical aids will continue to operate until the NHI is fully implemented, which is expected to take many years, due to the scale and complexity of necessary reforms and improvements of the healthcare sector and our economy. As there are too many unknowns about how the NHI Fund will function, what benefits it will provide and how it will be funded, it is far too early to speculate about the role of medical aids in the long-term.?
AMS' commitment
Your Board of Trustees and Scheme management will keep a watchful eye on further developments, consult with industry experts and industry bodies to protect your rights and your access to health care. We are committed to keeping you informed about all relevant developments as they unfold.
You can read more information to the topic in these articles, published by our administrator Discovery.
NHI frequently asked questions
NHI and the role of medical schemes
Published May 2024