News Desk | NHI

Unified Legal Challenges to NHI Act Expected to Gain Strength

10 June 2024,  09:30
 

The controversial National Health Insurance (NHI) Act, signed into law by President Cyril Ramaphosa just two weeks before the elections, faces several legal challenges. At the Healthcare Funders’ Association symposium held on June 19th, it was revealed that six entities, including the trade union Solidarity, the Health Funders’ Association, the South African Medical Association, the Board of Healthcare Funders (BHF), the South African Health Professionals Collaboration, and the Democratic Alliance, have initiated legal proceedings against the Act.

It is anticipated that these cases will eventually be consolidated, which might initially cause delays due to the need for coordination among multiple legal teams. However, consolidation could lead to a single comprehensive ruling. One positive outcome of the NHI debacle has been increased unity within the private healthcare sector, with legal practitioners now collaborating more closely.

The NHI's financial assumptions have been criticized as outdated and unrealistic. According to the various objections, the cost has not evolved since 2011, when the total cost was estimated to be R256 billion by 2025. This lack of updated economic analysis is one of the chief concerns regarding the feasibility of the NHI’s proposed benefits package. Furthermore, Section 33 of the Act, which prohibits medical aid schemes from offering services similar to those provided by the NHI, is seen as infringing on constitutional rights by limiting access to superior healthcare options available through private schemes.

In the two cases already filed, the entities being sued are significant. The BHF is suing the President and the Minister of Health, requesting that the President’s signing of the Act be nullified and that the government release the decision-making records, including legal opinions from the state attorney.  Solidarity’s lawsuit, which is broader in scope, targets the President, the Minister of Health, the Director-General, the Minister of Finance, and the National Treasury. It seeks to have the entire NHI Act declared unconstitutional, which would prevent its implementation. 

Regardless of who joins the fight, the NHI Act is likely to face protracted legal challenges for years to come.
 

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