The National Health Insurance Bill (Bill) will leave people worse off and deter globally mobile professionals from working in South Africa, Business Leadership SA (BLSA) CEO Busi Mavuso warned on Monday.
The Bill was approved by Parliament’s Portfolio Committee on Health in May. It is expected to be passed by the National Assembly within the next few weeks, and thereafter by the National Council of Provinces (NCOP).
It is set to establish a single NHI fund that will purchase services from public and private sector providers on behalf of citizens, and reduces the role of medical schemes to cover only services not provided by NHI.
The Bill has been criticised by South Africa’s biggest doctor organisations, private hospitals, and its biggest medical scheme administrator, Discovery Health.
‘By forcing the private sector out of the provision of all but a limited set of complementary services, private provision would effectively cease. For globally mobile businesspeople and their families, this would be another serious disincentive to work in South Africa.’
‘To be clear, business would benefit from an environment in which everyone had good quality healthcare. One in which no-one had it would be catastrophic’, she said.
Mavuso noted the electricity crisis where the introduction of large-scale private electricity generation has dramatically increased the number of projects being built to add capacity to the grid.
The private sector could complement government efforts, speed up investments, and reduce costs.
Business worked closely with the Government to source equipment and medicines, and to rapidly expand the provision of Covid-19 vaccines. ‘It was a clear demonstration that national health outcomes are achieved faster and more efficiently when government and business work together, drawing on their respective strengths’, said Mavuso.
Brazil and Thailand are among the developing countries that provide health services with a blend of private and public cover.