Government Rolls out Health Insurance Plans

NHI latest version released The NHI scheme is set to be implemented by 2012.

Answering calls to make public its health insurance plans, the South African government yesterday outlined the newest details about the scheme that should be implemented from 2012.

KwaZulu-Natal Premier, Zweli Mkhize said that the National Health Insurance scheme would be implemented over the course of 14 years, with the ultimate objective to provide equal cover for all South Africans.

He estimated that the health department would require an extra R11 billion in the first year of implementation alone.

"Given the financing resources that South Africa commands, NHI is affordable," argued Mkhize.

The scheme will guarantee full health services to all citizens, whether they are able to afford it or not.

The government intends to introduce new taxation in a bid to fund the new scheme, and everyone who had an income would need to take part in the payment burden.

Other details provided by the premier included the fact that nobody could be forced to use the services, and private hospitals would not be obliged to become part of the new NHI scheme.

Members of the scheme would be able to decide in which area they wish to register, although they would not be able to choose their specialists or hospitals.? All medical treatment would be free.

Speaking on the long term effects on the South African tax payer, the chairman of the government's advisory committee on the NHI, Olive Shisana, said: "We know exactly what it will cost to operate the NHI, but we have not run the numbers on what it would mean to taxpayers."

Opposition to the new plan has already come from a number of quarters, and analysts are saying that health professionals will leave the country in droves.

There has also been criticism for plans to introduce new tax.

"Our middle-class is already over-taxed," said economist, Dawie Roodt.