How the new NHI Bill will reshape SASSA grants in South Africa

The much-maligned National Health Insurance (NHI) Bill has finally been signed into law by the president, and here’s how experts predict it will reshape SASSA grants in 2024.

With less than two weeks to go to the 29 May General Elections, many say this is political grandstanding by the African National Congress (ANC).

Be that as it may, this is how many believe the NHI Bill will reshape SASSA grants …

The South African Social Security Agency is charged with disbursing social welfare to roughly 29 million people in Mzansi.

At last count there were 4 million old-age-pensioners, 13 million childcare beneficiaries, 10 million Social Relief of Distress recipients, and roughly 2 million disability and war veterans.

That equates to more or less 3.6% of the country’s entire GDP.

NHI BILL WILL RESHAPE SASSA GRANTS

That is a lot of people to feed, cloth and maintain a roof over their head with centralised social welfare.

Now, government wants to provide free healthcare, too.

However, we can’t ignore some untimely news for the ANC.

Ahead of 29 May elections, Stats SA has says unemployment has risen to 8.2 million people in the first quarter of 2024.

Therefore, currently in South Africa, we have 16.7 million people gainfully employed out of a possible labour force of approximately 40 million.

And as many as 7 million people are believed to be working in the informal economy, which pays no tax to SARS at all.

So, out of a population of 61 million, just over one third (37.5%) are contributing taxpayers.

And it is this narrow bracket that will have to fund the newly signed NHI bill … and continue funding SASSA grants.

UNIVERSAL HEALTHCARE FOR ALL

As the nation braces for how the NHI Bill will reshape SASSA grants, stakeholders are pushing the narrative of government healthcare reform.

The Office of the Presidency says NHI aims to provide universal quality healthcare to all South Africans.

Not just the one-percenters with expensive private medical aids.

Central to its implementation is the establishment of a single, state-controlled fund that will pool resources (funded by all taxpayers) to finance healthcare for everyone.

In theory, NHI should promote healthcare equity and enhance service delivery.

However, critics believe NHI is not practically sustainable and is merely another way state funds will be centralised and pilfered by nefarious government officials.

PARADIGM SHIFT FOR MEDICAL AIDS

The SAPeople website has written countless articles on the best medical aids for SASSA grants recipients.

And, frankly, as affordable as they may seem, when SASSA beneficiaries are living on or below the poverty line, they’re still not enough.

Therefore, if done correctly, the NHI bill will reshape SASSA grants positively.

Historically, social-welfare beneficiaries – particularly pensioners – have had to rely on poor South African public healthcare.

A service plagued by inequality, poor funding and accessibility.

However, through a unified financing mechanism, all South Africans, including old-age pensioners, will be enrolled in the NHI system and be entitled to comprehensive healthcare coverage.

BUDGET ALLOCATION

While this does posit improved medical services for the poor, it’s still early days.

And large questions loom over how effectively it will be implemented.

Moreover, some critics question whether NHI may in fact put a strain on government finances, potentially affecting the funding and sustainability of SASSA grants.

If, in the coming years, healthcare costs should rise, and the taxpayer base funding NHI fail to increase, social welfare may suffer.

Furthermore, old-age pensioners are already struggling to make ends meet.

Research has found they often must forego chronic medication to just to pay for food and transport.

However, in theory at least, the NHI should reduce out-of-pocket healthcare expenses.

Thereby alleviating the financial burden on Mzansi’s neediest residents.

COLLABORATION REQUIRED

And while the broader ramifications of how the NHI bill will reshape SASSA grants is still unknown, one thing is for sure … concerted collaboration between healthcare and social welfare agencies is paramount in making it a success.