President Cyril Ramaphosa is set to sign the National Health Insurance (NHI) Bill on Wednesday, but the possible impact that it will have on South Africans who have medical aid is still unknown.
The National Health Insurance is a policy that South Africans may have heard about, but there are still some important aspects of the policy that they may still be in the dark about, such as what it is and how it will affect them.
While NHI is yet to be implemented, it is essential that South Africans are aware of the impact that it can have on them, especially those who have medical aid and medical insurance.
To shine some light, here is a closer look at the issue.
What is NHI?
According to the Department of Health (DOH), the NHI is a fund that government will use to purchase healthcare services from healthcare providers in the private and public sector for South Africans.
Paresh Prema, head of technical and actuarial solutions at Alexforbes, calls the NHI a central fund that will pay for healthcare for all South Africans.
The fund will make healthcare more affordable for everyone by lowering the cost of healthcare and it will also ensure that South Africans have access to free healthcare when they need it.
The NHI is like a medical aid for all which everyone will contribute to through taxes and special contributions, according to the DOH.
Medical aid/insurance
While the NHI bill has not been signed by President Cyril Ramaphosa and it will take around eight to 10 years to implement ,according to Prema, it is essential to clear up any confusion for those who pay for medical aid and medical insurance.
According to Discovery, the NHI bill states that medical schemes cannot pay for services that are covered by the NHI.
Prema said that once NHI is implemented, people may not see the need for medical aid or medical insurance because they will be covered by the government.
“South Africans will only turn to medical aids or medical insurance if they need for cover for procedures that are not covered by the NHI,” Prema said.
According to Prema, medical aid or medical insurance may offer ‘complimentary cover’. Complimentary cover may refer to elective or cosmetic procedures that NHI will not cover.
While the medical scheme industry will be limited in what they can cover, they do have the potential to exist in a smaller capacity.
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