Motsoaledi says getting NHI rolling during GNU's 5-year term unlikely

CAPE TOWN - Getting the National Health Insurance (NHI) fully functional during this five-year term of the Government of National Unity (GNU) appears unlikely.  

Health Minister Aaron Motsoaledi has told parliament that practically and realistically, it will take years to reach its full implementation.  

In response to a question from ActionSA, Motsoaledi has revealed that it will take two years alone just to set up the fund as a public entity.  

Ahead of the tabling of the Medium-Term Budget in October, Motsoaledi reportedly faced pushback from Democratic Alliance (DA) members of cabinet over the abolition of private medical aids.  

READ: Motsoaledi says NHI going ahead despite GNU disagreements

In response to questions from ActionSA's Alan Beesley on the cost and funding of the NHI, the health minister said no additional funding has been needed at this time because preparatory activities are being funded from the existing health budget, particularly from items where there has been under expenditure.  

The NHI Act has not yet been promulgated and the regulations that will give impetus to its implementation, have also not yet been released.  

Over the next three years, government is spending almost R900 billion on health services.  

But Motsoaledi is not yet putting a price tag on the cost of the NHI's implementation.  

He said progress will be determined by the country’s fiscal situation and there’s still much work that needs to be done on developing the purchasing mechanism for the fund.  

"What is more likely is the redirection of existing funds such as conditional grants and a gradual slow increase in funding, depending on national affordability. Complex systems and mechanisms would first need to be developed within the fund to ensure a smooth transition, which will likely take several years," said Motsoaledi.

Asked by ActionSA whether the health department would look to the Public Investment Corporation to fund the NHI, Motsoaledi said ministers will discuss alternatives to present to cabinet's budget committee.  

He said whether it will be necessary to hike personal income tax to pay for the NHI will be evaluated as the reform progresses.