NHI Framework

Currently only 9% of the GDP is being spent on health in South Africa. The 17% of the population who have access to private hospitals and doctors are receiving significantly better health care than the remaining 83% of the population.

NHI aims to strengthen the quality in public facilities and reduce the costs of private health care.

Why a Change is Needed

Despite the problems with NHI, a change in the system is needed. Too many people are forced to use the public health system which isn't serving their needs. 

Questions and Criticisms

The government's proposed National Health Insurance plan has received widespread backlash. There are a few main criticisms that poke holes in the plan.

1. Increased tax burden on the upper/middle class

With roughly 3% of tax payers paying over 75% of taxes in South Africa, many in the upper class feel an unfair tax burden. This plan would increase the taxes of upper class South Africans even more to pay for the health care of the lower classes. Obviously upper class South Africans are not hugely in support of the plan as they can already afford private medical aid schemes and top rate care. The first step of implementation will be to take away the medical scheme tax credit to raise funds for NHI. This will immediately mean that many members of the middle class will no longer be able to afford a medical scheme and private care.

2. Decreased quality of care

There are also concerns that National Health Insurance will lower the quality of care for everyone. Those who previously used medical schemes to access private health care are not eager to use the same system as everyone else, which many believe will not be up to par. Many see NHI as simply forcing more people into the already flawed and overloaded public health system. 

3. Can it even be implemented?

South Africans are also tentative to hand over their entire health care system to the famously corrupt and inefficient South African government. There are doubts whether the government is capable of implementing such an extensive system. It has already been delayed from an initial implementation date of 2015 to 2025. Raising taxes and the removal of the medical scheme tax credit will pay for some of it, but the government does not yet have the money or a plan to raise the money for their ambitious plan. 

South Africa's New National Health Insurance Plan: A Summary

Currently, South African health care consists of public and private hospitals. Any South African can be treated for free at a public hospital, but the quality of care and waiting times are often subpar. More affluent South Africans can pay for care at private hospitals where quality of care is much better.

In order to address this inequality of healthcare among the socioeconomic classes, the South African government is trying to establish a National Health Insurance system. Under this system, everyone will pay an additional tax percentage which will go into a pool out of which everyone's health care will be funded. Private medical aid schemes will also come to an end for the most part. This would mean that all citizens will have the same medical coverage and access to services, regardless of their socioeconomic status.

Of course, many are not happy about the government's proposed new plan. Keep reading further down for details on the criticisms facing South Africa's National Health Insurance.

NHI: Where has the money gone?

http://www.bizcommunity.com/Article/196/330/174985.html

The money being set aside to fund the NHI is not going to be enough to cover all costs.