Private sector healthcare schemes will still have a role to play when the government implements the National Health Insurance (NHI) because the treasury cannot finance the system on its own.

The possibility of the NHI squeezing out medical schemes “is very unlikely for a very long time, if at all”, according to Mark Blecher, the chief director of health and social development at the treasury.

“It’s not easy to raise taxes and the role of private financing is very important in our context, and it’s very difficult for government to take on that private financing, so … we’re going to continue to see a role for private medical schemes and a multi-scheme arrangement for many many years,” he told a recent roundtable discussion on the insurance.

The government says it aims to ensure equitable access to quality healthcare and rectify the imbalances created by apartheid. President Cyril Ramaphosa signed the contentious NHI Act on 15 May 2024. ….more