Government Puts Price Tag on NHI

October 12 - The South African has finally put a price tag on the planned National Health Insurance scheme.

The Chairwoman of the NHI ministerial advisory committee, Olive Shisana, said that the first phase of the scheme will require an additional R11 billion.

This is over and above the R128 billion that the government will require to implement the first phase by 2012.

According to Shisana, the government already has the R128 billion, while the R11 billion needed is the shortfall.

"The rest of the money is available," she said. "We need an additional R11 billion."

The cost of delivering the NHI will be around R376 billion a year by 2025.

The ministerial committee is currently examining a number of funding models to find one that matches South Africa's needs.

Some of things being looked at include payroll tax, an increase in VAT and a surcharge tax.

Olive Shisana said that there was very little chance that co-payments would need to be made by South Africans as a form of raising the funds needed.

The new plan will see one pay system collecting money and paying health service providers.

Those South Africans who want to ensure that they receive extra health care will be free to belong to private health insurance groups.

Economists have expressed their doubts over the chances of such a system working, saying that it could be vulnerable to fraud and corruption, considering that it was dealing in billions of rands in funds.

However, Shisana said that fraud and corruption was also present in private health groups and was not a reason to do away with the idea.