Business
South Africa inching towards universal health care
South Africa has moved one step closer to a National Health Insurance scheme (universal health care), with Finance Minister Pravin Gordhan announcing a R121 billion (US$15.6 billion) health budget for 2012/13, aimed at improving hospitals and strengthening public health ahead of the scheme’s introduction.
The National Health Insurance scheme (NHI), which will be phased in over a period of 14 years, starting this year, aims to provide equitable health protection for all South Africans.
Delivering his Budget speech to Parliament in Cape Town on Wednesday, Gordhan allocated R1 billion (US$129 million) to the scheme’s pilot projects in 2012/13.
Setting the Stage for Universal Health Care
The Department of Health will this year complete an audit of all health facilities in the country, and is working with the Council for Scientific and Industrial Research and the Development Bank of Southern Africa to develop a targeted response to the infrastructure needs of the sector.
Health Minister Aaron Motsoaledi acknowledged on Wednesday that it would take some work to finally get the NHI to where the government wants it to be.
“That is why we are giving ourselves a period of 14 years, but we do acknowledge that we have to start somewhere, and I must emphasize that by piloting we are putting down the bricks and we getting everything ready,” Motsoaledi told journalists in Cape Town.
There were two “preconditions” for making the NHI work in South Africa, namely an overhaul to create a quality health care system, and strict regulation of the sector to make it more affordable to all South Africans.
“When we say we want to regulate pricing, it does not mean we are unfair to the private sector,” Motsoaledi said. “What we saying is that you can’t discriminate against people based on price just because the public health system is so poor.”
In the interim, general taxes will remain the primary financing of NHI projects, while new funding resources will be explored over the long term depending on the progress of institutional reforms and health delivery capacity.
Preliminary modelling suggests that full implementation of the system may be realized by 2025, but this will require financing to rise from 4 percent to 6 percent of gross domestic product (GDP).
A discussion paper on revenue options and associated transitional issues, including the role of medical schemes, will be released later this year.
Source: BuaNews