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Jeremy Maggs: It now appears that the NHI (National Health Insurance) Bill is close to being signed into law, and if it moves forward with momentum it will change healthcare in South Africa forever. However, there is a steady increase in the field of medical benefits, which is a cause for concern. I would like to take a different perspective on this. Joining us now is Gary Feldman, Executive Head of Healthcare Consulting at NMG Benefits. Gary, welcome. What is your feeling, do you think the President (Cyril Ramaphosa) will sign this bill soon?
Gary Feldman: Hello, Jeremy, and hello to all our listeners. Jeremy, I don't think the president has a choice at this point. I don't think he can send it back to a committee in Congress. I think he's going to get egg on his face. But I don't think listeners need to worry that much. Even if he signs it, if Pen is found, I think there will still be a lot of water going into the ocean before we see any real change in South Africa's healthcare landscape.
Read: Repeal the NHI bill, it’s unconstitutional – from Busa to Ramaphosa
Jeremy Maggs: So let's talk about that water if we can. Does that mean it won't have an immediate impact on the business models and strategies of existing health benefits companies?
Gary Feldman: Of course, Jeremy. If you look at it after it's signed, there are still a lot of different laws that need to be adjusted. In particular, the Health Care System Act needs to be changed, and it will only change once the National Health Insurance Bill is promulgated. So we need to change that, but in the meantime…
We believe that groups and organizations such as health systems like Business for South Africa (B4SA) will take the case to the Constitutional Court challenging the constitutionality of the NHI Bill.
I think we're all in favor of universal health care. That is absolutely non-negotiable. We believe that all South African citizens and permanent residents should have access to universal healthcare. However, National Health Insurance is not required to receive universal health insurance. In practice, universal health coverage means that more people have access to care at an acceptable price or free of charge for low-income and unemployed people. However, I think what people don't understand is that we don't need National Health Insurance to achieve that goal.
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Jeremy Maggs: Gary, what steps should health benefit companies take now to prepare for the inevitable integration into the system you're suggesting?
Gary Feldman: Well, Jeremy, as the NHI bill currently states, which is pretty vague, it says that private health systems cannot provide the same benefits that the NHI provides. Therefore, the health system can only provide top-up benefits. But as I said, the health care bill clearly states that the health care system will not be able to deliver when fully implemented, so I don't see that happening for at least another 7 to 10 years. yeah.
There are so many things that need to be clarified and fundamentally put in place before the National Health Insurance Bill comes into full force that we don't even know what full implementation means.
So, again, I think people should avoid canceling their health care plans at this time. I believe that South African businesses should target more employees to take pressure off the public healthcare system, which is currently broken. Therefore, in South Africa at least those who are employed have access to some form of private healthcare.
Jeremy Maggs: However, everyone is understandably concerned about the additional costs.
Gary Feldman: Well, I think we'll see in the budget as early as next week that the Minister of Finance (Enoch Godongwana) will abolish tax credits, which will once again have a huge impact on middle-income South Africans, because the basic Because that's what happens. Help make private healthcare affordable. From the government's perspective, I think that would be a bad choice. Because, as I said, the government is not ready to introduce a national health insurance bill. Enable people to maintain private health insurance for as long as possible.
So this is one of the things that we expect to happen, like I said, could happen as early as next week. But before there can be any changes to the private health care that many South Africans currently receive, there are a number of different factors that the government must address and essentially ensure that they are put in place. .
Jeremy, just thinking about it, there are about 1.5 million people in South Africa who are not covered by the health care system. However, they still rely on private healthcare. These people basically use people like doctors and dentists. They prefer to self-finance their private healthcare costs. They are not part of the health care system. Now, if the National Health Insurance Bill is implemented in the way it is currently being tabled, these people will no longer be able to access private medical care. This is because it clearly states that any form of private medical care is not available for the services provided. by the National Insurance Bill.
If that happens, there will probably be a big debate from those people as well. It is not just private healthcare members who are compromised, but also those who have the funds to receive private healthcare that is currently inaccessible.
Jeremy Maggs: Okay. Gary Feldman, I'll leave it at that. thank you very much. Clearly, the ball is in the minister's court and we'll see what comes out during budget time at the end of February.
