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Motsoaledi on the NHI: No compromise
Motsoaledi on the NHI: No compromise
Minister of Health Aaron Motsoaledi has denied that the ANC has shifted its stance on the National Health Insurance (NHI), labelling these assertions as “unfounded and ridiculous.”
He also expressed his discontent with how the media has been covering the NHI.
The NHI is the ANC’s plan for universal healthcare coverage. It is a centralised, national insurance fund from which the government will be the sole purchaser of healthcare services from healthcare providers in both public and private sectors.
The scheme has drawn criticism from various sectors, including some businesses, healthcare providers, medical aid schemes, legal experts, unions, political parties and South African citizens.
Notably, the two main parties in the government of national unity (GNU), are at odds over the NHI. The DA strongly opposes the phasing out of medical aid insurance, while the ANC supports the act.
Citing unnamed ANC sources, the City Press reported on 12 January that Motsoaledi is planning to table a compromise proposal at the first Cabinet lekgotla of 2025 on how the NHI is to be implemented.
This would reportedly be done to appease the partners in the GNU, especially the DA.
The report stated that the proposal is “for all South Africans working in the formal sector to be obliged to obtain medical coverage.”
“The state will compete with medical schemes to provide cheaper medical insurance through the NHI.”
However, Motsoaledi and the Department of Health have dismissed the claim, saying that “there is no such a plan that will be proposed to the Cabinet Lekgotla.”
The minister added that such claims are “unfounded and ridiculous.”
“There is no such plan from either the ANC or from the government. Any insinuation thereto is the figment of the imagination of either the author of the article or his unknown sources,” said Motsoaledi.
Forcing medical schemes to be cheaper allegations
Motsoaledi said that “it is now an uncontested fact that private health care costs are escalating at a rate that are likely to collapse the sector.”
Recently, medical aids have increased their subscriptions by up to 10% and more, with GEMS going up to 13%.
However, the Minister said that “even people with rudimentary knowledge of private health care will know that forcing medical aids to be cheaper is not a solution to this problem.”
“In fact, it will be dumb for anyone to suggest that,” said Motsoaledi
The minister has also disagreed with the suggestion of low-cost benefit options for medical schemes, saying it would be wrong to provide poor people with less cover than rich people who could afford more generous options.
“What the NHI proposes is that all health facilities, public and private have to be accessible to all South Africans if and when their health needs demand it. “But this must be done, obviously, in an affordable manner,” said Motsoaledi during oral replies of the National Assembly.
The Minister then lashed out at “certain segments of the media,” who he says “keep second-guessing about what will be done with the costs of the private health sector.”
A market inquiry chaired by an eminent jurist, retired Chief Justice Ngcobo, conducted a six-year deep investigation into this matter “to avoid anecdotes and snake-oil remedies as suggested by this article.”
Despite this, he claimed that many in that media are “going on a wild goose chase.”
In the coming weeks the Minister of Health hold a press conference to elaborate on the way forward with the recommendations of the Health Market Inquiry.
Price tag blowback
The Minister also used the statement to vent his discontent with the reporting of NHI funding.
Momentum Health estimated the private sector spends an average of R1,750 a month, or R21,000 a year, on each of the country’s 9 million medical scheme beneficiaries.
If the NHI plans to offer the same care to all 63 million South Africans, this would translate into a cost of R1.3 trillion annually.
Momentum said that while there would be savings through the use of medical aid tax credits and enhanced scale, this would only bring the cost down to R900 billion per year.
However, Motsoaledi labelled this estimate as “mathematical hooliganism” and said that the “department is perturbed by the posture of the media in respect of NHI.”
Motsoaledi said that while NHI aims to “provide quality healthcare,” this does not inherently equate to expensive healthcare and criticised certain charges within the private healthcare sector as excessive.
“Recent reporting on NHI represents nothing but an onslaught by some sections of the media on NHI, which clearly is aimed at adding confusion and discrediting NHI,” said Motsoaledi.
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