NHI Bill causes panic and increase in emigration applications

President Cyril Ramaphosa signed the controversial National Health Insurance (NHI) Bill into law on Wednesday.

This highly-contested Bill aims to achieve universal access to quality healthcare services for all South African residents, whether in public or private healthcare facilities.

These services will be covered by the NHI fund. The fund will be paid for by taxpayers, contributions by people earning above a set amount (yet to be specified) and monthly contributions made by employees to the fund.

WHAT ARE THE IMPLICATIONS OF THE NHI?

The vagueness around timelines and funding for NHI, and the future of medical aids could see South Africans paying extra tax, paying for a medical aid scheme and funding the NHI at the same time, writes BusinessTech.

As for medical aids, these private health insurers will not be able to provide cover for services that are paid for by the NHI.

This will make South Africa’s healthcare system an outlier, when compared to other countries. The UK for example, which has the state-funded National Health Service (NHS), still allows people to take out medical insurance to receive any treatment they want from private doctors and hospitals.

The healthcare sector and various business groups in South Africa have accused the ANC government of rushing the Bill through legislative processes.

Moneyweb says the Bill will almost certainly be challenged in court. NGOs, opposition parties and private sector healthcare providers have indicated that the NHI is irrational, unaffordable and unconstitutional.

Political parties have also voiced concerns that the Bill is opening the health system to corruption and the looting of state funds.

SUDDEN INCREASE IN DOCTORS, TAXPAYERS LOOKING TO EMIGRATE

Medical professionals, medically high-risk individuals, and “cautious taxpayers” are now seeking assistance emigrating due to the NHI, say tax experts.

“Medical professionals have approached us to assist with their potential emigration due to not wanting to work for the government; families with medically at-risk members fearing for their loved one’s future in South Africa; as well as numerous taxpayers uncertain about the tax burden for the funding of these healthcare provisions and the potential burden on the economy,” Tax Consulting SA has said.

Studies and surveys have shown that many healthcare professionals in South Africa would rather leave the country than work for the government under the NHI.

Additionally, alongside the NHI, issues like low pay, unfavourable working conditions, and job insecurity are factors contributing to the exodus of doctors and medical workers from the country’s healthcare sector.

A Canadian immigration consultant says his offices have flagged a 31% increase in work permit applications, the majority of which have been submitted by healthcare professionals.

Health minister Joe Phaahla has been insisting that healthcare workers needn’t panic about NHI, and to ignore the “naysayers”.

However his department has left many questions around medical coverage and funding unanswered.