"It's a NO from us,  Mr President".  SA Business lobby groups push back on proposed NHI legislation

5 February 2024, 07:30
Contributor: Linda Ravenhill

The National Health Insurance (NHI) Bill does not pass constitutional muster. So say Business Unity SA (Busa) and Business for SA (B4SA), who have come out strongly against the Bill in its current format, urging the President to send it back to the National Assembly to address the significant concerns raised.

The National Council approved the Bill of Provinces in early December last year, and it is currently before the President for a decision. Mr Rhamaposa has two options: pass the Bill into law or push it back to the National Assembly.

The BUSA and B4SA cited the rushed legislative process, inadequate public participation, and lack of a comprehensive socio-economic assessment as major concerns, all of which should be prefaced against the background of an election year. In addition, significant questions remain regarding the funding model for the scheme, given that it will cost an estimated R859 billion to get the project off the ground: our current health budget is R233 billion.

In support of its claim of unconstitutionality, BUSA contends that Section 33 of the NHI bill, which grants the health minister significant authority over services provided by medical aid schemes, is unconstitutional. Section 33 stipulates that once the NHI is fully implemented, medical schemes can only offer complementary coverage for services not covered by the Fund, which would threaten the longevity of the medical aid industry.

And then there are the contradictions between the NHI and various statutes, including the Competition Act and the Protection of Personal Information Act, as well as internal contradictions within the NHI bill itself. One of those contradictions would apparently remove the health functions of the provinces with immediate effect, impacting funding of about R196 billion and exacerbating the financial strain in an already collapsing public healthcare system. Both lobby groups emphasize the importance of addressing these issues for a constitutional, affordable, and implementable NHI.

Regardless of the President's decision, it looks like both sides are digging in for a fight. One can only hope that the South African public is not the ultimate loser in this one.


Related Content 

6 Dec 2023: Concerns raised as NHI Bill approved by National Council of Provinces
 

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