JOHANNESBURG, Aug 12 (Reuters) - South Africa plans to introduce a National Health Insurance (NHI) programme that it says will cost 125 billion rand next year, equal to about 13 percent of the state budget, and rise to 255 billion rand (${esc.dollar}35.3 billion) by 2025.
The following are details of the plan, which is expected to be finalised in three months and be one of the most expensive pieces of legislation in the country's post-apartheid era:
* The estimated costs of the plan are 125 billion rand in 2012, 214 billion rand in 2020 and 255 billion rand in 2025.
* The plan will be primarily paid for through tax revenue and mandatory NHI contributions. Employers will also pay into the scheme.
* Increased spending on NHI will be partially offset by decreased spending on other medical schemes
* NHI is aimed at providing universal coverage and more access to quality medical care for the country's poor. Mandatory contributions will be determined by an individual's ability to pay.
* All South Africans, legal permanent residents, short-term residents and foreign students must enroll and make appropriate payments. Tourists will be required to produce proof of travel insurance upon entry into the country.
* A National Health Council will overhaul the hospital system.
The National Health Insurance Fund, to be established in 2014, will be a government-owned, single-payer entity. A multi-payer system in the NHI Fund will be studied. The NHI Fund will be an autonomous public entity overseen by the health minister and parliament.
* Private health care schemes will be allowed to continue but there will be no tax subsidies for those who chose to stay in the plans.
* No South African or legal resident can opt out of NHI, even if they keep private insurance.
* NHI contributions will be collected by the South African Revenue Service. Funding will flow through the National Health Insurance Fund Treasury
* Capacity of medical, nursing and other health schools will be increased due to a lack of skilled professionals required under the NHI plan.
* Plan calls for building six flagship hospitals and refurbishing 122 nursing colleges from 2012
* Pilot NHI programmes will be rolled out from next year to better determine costs and coverage.
* Registration for the public will start from April 2012.
(${esc.dollar}1 = 7.218 South African Rand) (Reporting by Jon Herskovitz; editing by Robert Woodward)
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of the Thomson Reuters Foundation. For more information see our Acceptable Use Policy.
comments powered by Disqus