NHI Will Not End Private Healthcare, Says President Ramaphosa

President Cyril Ramaphosa has dismissed claims that the National Health Insurance (NHI) will signal the end of private healthcare. In his weekly newsletter, the President emphasized that the NHI aims to leverage the strengths and capabilities of both the private and public health sectors to create a unified, quality health system for all South Africans.

“The NHI will procure services from accredited public and private providers for everyone in need of healthcare,” President Ramaphosa stated. He explained that the NHI will be a lifeline for millions of poor South Africans, freeing up their resources for other essential needs and alleviating the financial burden on those currently paying high medical aid premiums for fewer services.

President Ramaphosa highlighted that South Africa’s private health sector boasts world-class expertise and attracts significant domestic and foreign investment. He also praised the public sector for its numerous centers of excellence staffed by well-trained and experienced personnel.

Despite differing views on the implementation of the NHI, President Ramaphosa stressed that the current healthcare system is unsustainable. He argued that access to quality healthcare should not depend on one’s financial means, as the present situation fails to serve the poor, the middle class, and the country as a whole.

With careful planning, effective oversight and monitoring, and strategic resource allocation, the President believes South Africa can achieve universal health coverage (UHC). “Working together in partnership, as both the public and private sectors, we can make the dream of quality healthcare for all a reality,” he said.

This commitment comes as South Africa moves closer to affordable, quality healthcare for all, following the President’s signing of the NHI Bill into law last week. President Ramaphosa pointed out that for years, South Africa has had parallel healthcare systems. The majority of the population (84%) uses public health facilities, while 16% are covered by medical schemes, enabling access to private healthcare facilities. A small percentage of people use both systems.

The President believes this dual system perpetuates inequality, with the quality of healthcare determined by one’s ability to pay, contrary to the aspiration of a just and equal society. He emphasized that social justice, efficiency, and better resource allocation are key objectives of the NHI.

“We have said that the challenge in implementing NHI lies not in the lack of funds but in the misallocation of resources that currently favor the private health sector at the expense of public health needs,” President Ramaphosa stated. He also noted a misconception that the private healthcare sector operates independently of government funding.

The President clarified that the training of healthcare professionals is subsidized by the State, which also pays billions annually in subsidies for employees who are members of public sector medical aid schemes. Additionally, taxpayers claim approximately R37 billion in tax rebates for medical aid expenses, money that the state foregoes to subsidize private healthcare.

Therefore, he argued, the state indirectly funds a private healthcare sector that serves only a minority of society. He also pointed out that access to private healthcare through medical aids is costly, with contributions increasing faster than inflation and benefits being reduced.

Citing the 2016 Healthcare Market Inquiry, President Ramaphosa noted that private healthcare services and medical scheme coverage are frequently over-used without clear improvements in health outcomes. He concluded that the resources spent by both the state and private individuals could be more efficiently used to build a single, unitary healthcare system that serves all South Africans. – SAnews.gov.za