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BHF Submission to the Select Committee on Health and Social Services on the National Health Insurance Bill [B11B-2019], s76
(23 August 2023)
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BHF Submission to the Portfolio Committee on Health on the National Health Insurance Bill 2019
(26 November 2019)
I, Pakishe Aaron Motsoaledi, the Minister of Health, intend to introduce the Governance Regulations to the National Health Insurance Act, 2023 (Act No. 20 of the 2023).
Download PDFSouth Africa, as with many countries, is committed to achieving the global goal of Universal Health Coverage (UHC) by 2030, leaving no one behind.
National Health Insurance (NHI) is a healthcare financing system that can be used to support the achievement of UHC in a country. However, NHI is not a necessity to achieve UHC. While the structure and details of NHI can vary greatly between countries, the key aim remains to promote the achievement of UHC, ensuring that everyone in the population can access the healthcare they need without suffering financial hardship.
The conceptualization and design of any health financing system are supposed to take into account each country’s experiences and global lessons learned in the development of systems for UHC. Specifically, health financing within a UHC system needs to be designed to provide all people with access to needed health services (including prevention, promotion, treatment, and rehabilitation) of sufficient quality to be effective and to ensure that the use of these services does not expose the user to financial hardship.
In South Africa, the key focus of the reforms is the creation of the NHI fund, which will pool both healthcare risks and funds. The implementation of NHI is predicated on creating a distinction between who purchases and who provides healthcare. This is called the purchaser-provider split. As a purchaser, the NHI Fund will not provide healthcare services, but it must pay (in full with no co-payments) for a legally defined package of health care services. Everyone must have access to this package through healthcare providers who are accredited and contracted by the Funder and meet the minimum standards for the provision of care.
South Africa is introducing NHI to improve access to healthcare while reducing inequity and inefficiency in both the public and private sectors.
The solution lies in a unified healthcare system that places the patient’s interests first. The hope for NHI is that when anyone gets sick, the system is able to respond and address their health care needs in time. NHI aims to solve the problem of funding health care services for patients, no matter who they are.
For NHI to be successful, a strong partnership between the public and private health sectors is necessary. Resources for health care are scarce the world over, so any system of funding must be effective, efficient, and based on the health needs of the population as a whole. It must use all of the available resources in the best way possible to ensure access to health care services.
Funding is only one of the resource challenges in a health care system. Others are the availability of suitably qualified and skilled human resources, adequate infrastructure and resource management, the ability to effectively utilise health technology to improve health outcomes, quality assurance in health care services, and rigorously enforced health care standards. NHI is therefore only part of the solution for a well-functioning and properly capacitated health care system.
Currently, patients using either the public or private healthcare systems face many challenges when accessing healthcare. Patients accessing non-hospital-based services in the public sector are required to pay user fees, depending on their income status. In the private sector, due to the lack of appropriately determined tariffs, patients are faced with co-payments. The end result is that public and private sector patients both end up having to pay out of their own pockets for health care, whether they can afford it or not.
Under NHI, patients will not be required to pay up front for the NHI package of health care services. Access to such services will be free at the point of care.
The National Health Insurance (NHI) Bill was introduced to Parliament in August 2019 and passed by the National Assembly on June 13, 2023. The next step for the NHI Bill is for it to be passed by the National Council of Provinces (NCOP). The NCOP will deliberate and consult on the Bill before it can be passed into law. If the NCOP approves the Bill, it will then be sent to the President for assent.
Once the President signs the Bill into law, it does not become operational until the President signs a Proclamation at a later stage. The Proclamation will state the dates on which certain parts of the Act become effective. This gives the government time to get ready to implement the law. Before signing a Proclamation, the President must determine if the system is adequately prepared for implementation, has the necessary capacity, and can be appropriately financed.
In addition, the Minister of Finance must introduce into Parliament a separate Money bill, which must be processed by Parliament as provided for in the Constitution. Only the Minister of Finance can initiate and introduce a Money Bill. A money Bill is a draught law that sets out how the government may raise or appropriate money for a particular purpose. The NHI cannot be effectively implemented without the passage of a Money Bill into law.
The implementation of National Health Insurance is a massive undertaking that will not happen overnight. It could take decades before NHI is fully implemented due to all the system changes it requires.