Supporters suggest Mandatory Health Insurance Is a Step Forward from NHI for South Africa, | The Medical Education Network

News Desk | NHI

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News Desk | NHI

Supporters suggest Mandatory Health Insurance Is a Step Forward from NHI for South Africa

Time to read: 01:54 minutes
Time to listen: 03:43 minutes

Published on MedED: 30 September 2024
Type of article: News
MedED Catalogue Reference: MNHI0016
Category: News
Category Cross-reference: NHI | Health Policy
Keywords: NHI,HASA, Mandatory Medical Insurance

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30 September 2024 13:30

The idea of mandatory medical scheme coverage for employed individuals appears to be gaining attention after it was presented at the recent HASA healthcare conference.

At the conference, outgoing Netcare CEO Dr. Richard Friedland, representing the Hospital Association of South Africa (HASA), advocated for the return of mandatory medical coverage for employed citizens, a plan he described as more feasible than NHI.

See

9 September 2024 | South Africa’s healthcare challenges: Could this new plan offer a viable alternative solution to the NHI?

Mandatory medical scheme coverage had previously been considered in South Africa. However, the concept faded in favour of the National Health Insurance (NHI) system, which the African National Congress (ANC) endorsed during its 2007 national congress when Jacob Zuma became party leader.

Friedland's argument suggests that such a system could significantly reduce the burden on the public healthcare sector by expanding the medical scheme market from 9.2 million to approximately 27.5 million people. This would lessen the number of citizens relying on public healthcare and increase per capita spending on public health without additional government funding. According to Friedland, this model is more efficient and quicker in achieving health equity than the proposed NHI.

Some experts, including Professor Alex van den Heever of Wits University, support the idea, arguing that it would help reduce healthcare inequalities. Mandatory health insurance, by increasing medical scheme membership, would lower premiums by attracting more healthy, younger people into the system, reducing costs by 25% to 30%. Van den Heever notes that similar systems have been successfully implemented in various countries, including Thailand, the Netherlands, and Germany.

Critics suggest that mandatory health insurance could entrench existing inequalities in South Africa and that the NHI, which envisages a single-payer system, offers a more equitable solution.

The broader debate over mandatory health insurance versus NHI is ongoing, with consultations between business leaders and government officials, including President Cyril Ramaphosa, Health Minister Dr. Aaron Motsoaledi, and other stakeholders. It remains unclear whether these discussions will lead to modifications in NHI policy or open the door to mandatory health insurance as a viable alternative or complement to NHI.

This article was compiled from various sources, including:

30th September 2024 | Spotlight | Mandatory health insurance for SA is an ‘upgrade’ on NHI, proponents say

20 Sep 2024 | BusTech | Discovery ‘hopeful’ for NHI fix

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