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Choas Reigns: ANC & DA Reach Agreement to Keep Private Medical Aids in the NHI. Or Have They? Evolving Situation
Time to read: 01:27
12 February 2025:: Story Update
A week after this story broke, there has been no further update as to this evolving situation. The situation remains as it was following the President's SONAR address that we reported on below.
6 February 2025, 20:30. Post SONAR Address
Update: The status of private medical aids under the National Health Insurance (NHI) remains uncertain, as contradictory statements from political leaders continue to fuel debate.
Despite Democratic Alliance (DA) representatives insisting to 702 reporters last night that a deal had been secured to protect private medical schemes, President Cyril Ramaphosa made no mention of such an agreement during his State of the Nation Address (SONA). While he briefly touched on the NHI, he avoided addressing claims reported by News24 on 5 February that an arrangement had been finalised.
On the same day, BusinessDay reported that DA leader John Steenhuisen, speaking at a gathering of DA MPs, ministers, and the media, asserted that the ANC had given assurances that contentious provisions in the NHI Act—those that could lead to the termination of private medical schemes—had been removed.
However, with no official confirmation from the Presidency or the ANC, the question remains: Is the future of private medical aids truly secure, or is political manoeuvring clouding the issue?
More updates to follow as the situation unfolds.
6 February 2025, 10:59
Update: Speaking to Clement Manyathela on 702 radio this morning, Minister of Health Aaron Motsoaledi said he has no knowledge of the development, nor was he included in the discussions.
6 February 2025, 09:45
Update: BusinessDay is reporting that Cabinet convened an urgent meeting on Wednesday to finalise a new plan, which all parties have agreed to but must still officially sign. This comes as President Cyril Ramaphosa prepares for the State of the Nation Address and Finance Minister Enoch Godongwana readies to deliver this year’s budget in two weeks.
The revised plan strips out the National Health Insurance (NHI) scheme while still setting an ambitious economic growth target of 5.4% in South Africa’s draft five-year strategic blueprint.
5 February 2025: 18:30
News24 is today reporting that the African National Congress (ANC) and the Democratic Alliance (DA) have reached an agreement regarding the controversial National Health Insurance (NHI) Act.
According to our source article Moneyweb, DA leader John Steenhuisen announced: "An understanding has been agreed to drop a provision that would have caused the collapse of private medical-insurance companies."
Additionally, a ministerial advisory council has been suggested to oversee the integration of the NHI with existing healthcare structures.
Minister of Health Aaron Motsoaledi has been a strong proponent of Section 33, previously comparing its removal to "building a house without a foundation." However, he has also acknowledged that no law is immutable.
"There is no law on earth that is cast in stone, that never changes. I want to make that clear," he told Bhekisisa in August 2024.
Despite this, he has taken an aggressive stance against critics, including media houses and legal challengers. Addressing a panel at the World Economic Forum in January 2025, he described opposition to the NHI as "a big war" being fought in the courts. The legislation currently faces three major legal challenges, with more expected.
A significant hurdle for the NHI remains its funding model, which the government has yet to fully outline. Critics argue that the Act lacks clarity on when the NHI will be considered "fully implemented," creating uncertainty about the future role of medical aids.
The reported ANC-DA agreement suggests a shift toward a more flexible, hybrid healthcare model, allowing private medical schemes to continue alongside the NHI. Business and healthcare groups have proposed an alternative approach in which medical aids become mandatory for employed individuals. This model could ease the burden on the public healthcare system while maintaining a functional private sector.
As discussions continue, the future of South Africa’s healthcare landscape remains uncertain. However, this political compromise signals a potential path forward, balancing universal healthcare aspirations with the continued existence of private medical aids.
This article was compiled from various sources, including:
6 February 2025 | BusinessLive| SA sets bold growth target, strips NHI from draft planning document
5 February 2025 | BusinessDay |Steenhuisen welcomes removal of NHI from development plan
5 February 2025 | MoneyWeb Government signals a breakthrough in NHI impasse
5 Feb 2025 | BusinessTech | Huge development for medical aid members in South Africa:
5 February 2025| News24 | NHI breakthrough: ANC agrees with DA not to 'collapse' medical aids
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