The end of private healthcare and medical aids in South Africa – government responds to biggest NHI worries 

The South African Department of Health has responded to concerns raised about the National Health Insurance (NHI) scheme, assuring citizens that the scheme is affordable and will not destroy the private healthcare sector.  

The NHI aims to make the state the sole purchaser of healthcare in the country, providing all citizens with access to healthcare at no cost. Private healthcare providers will still be able to operate under the NHI but will have to register with the scheme and adhere to its pricing framework. The department emphasized that medical aid schemes will not be taken over by the NHI and that their business models will change over time.  

Funding for the NHI will come from taxes, including a payroll tax and a surcharge on individuals’ taxable income. The department stated that the financial impact of the NHI taxation system should not increase the burden on households compared to the current system. 

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