The Health Funders Association (HFA) has asserted that the government will need to work with South Africa’s medical funding-adept private sector providers to deliver the National Health Insurance (NHI).
The NHI Bill, which the government passed in June 2023, has drawn conflicting views. While some see it as a positive step in South Africa’s healthcare system, others have voiced concerns.
The HFA, the health cover industry body representing over 50% of medical scheme members, has said that the NHI will require the government to work with the private sector due to its “extensive world-class skills” and medical funding experience.
It added that the NHI has the potential to make or break the country’s healthcare.
Read:
The NHI could make South Africa a leader in digitised healthcare
‘Appoint people with integrity who are suitably qualified for their roles.’
CEO of the HFA, Phumelele Makatini, said the industry body, which represents the likes of Discovery Health Medical Scheme, Fedhealth, Glencore Medical Scheme, and others, shares the government’s commitment to health and that establishing an adequately resourced and sustainable universal system is complex and is still challenging for more developed countries.
“Only high-income countries have health systems that are predominantly funded by public funds. Elsewhere in the world, private funding contributes to achieving universal health coverage. In South Africa, where volumes are so much lower, our private health expenditure is well below that of most middle-income countries,” Makatini said.
As much as R225 billion was collected by medical schemes in 2021, with more than 91% of the funds disbursed for the medical treatment of members. According to Makatini, this displays the efficiency of private healthcare funding and mirrors the objectives of the NHI.
![](https://www.moneyweb.co.za/wp-content/uploads/2023/08/HFA-Infographic-555x1221.jpg)
Source: HFA
“… The medical scheme industry can bring this experience and capacity to a collaborative effort to build the NHI we all want for our children and grandchildren.
“The cover currently provided by medical schemes has much in common with this social security framework as prescribed minimum benefits ensure members never run out of cover for in-hospital care, chronic conditions, or life-threatening emergencies,” Makatini said.
She said while the NHI waits to be fully implemented, there is a joint responsibility to preserve what is left in the public sector and raise the level of healthcare to the standards of care private healthcare funding has made possible.
Read/listen:
SA’s NHI bill has noble aims but leaves too much uncertainty
The healthcare implications of the NHI Bill