Health Minister, Aaron Motsoaledi, is dead set on proceeding with the National Health Insurance (NHI) scheme, despite increasing criticism.
Investors however believe that the scheme, in its current state, will not be upheld, reports Cape {town} Etc.
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After the 2024 elections, statistics have indicated that shares, especially in private hospitals, have increased by as much as 23%.
These statistics are indicatory of a lower chance of the NHI bill being implemented in the coalition government.
The health department intends to undertake ‘massive roadshows and workshops’ to consult on the NHI.
This announcement from the minister has spurred confusion.
The rationality of a roadshow to consult on the NHI is questioned, because of the fact that provincial consultations were completed before the bill was signed into law.
Partakers in these initial consultations claimed to be wholly ignored as none of the issues raised resulted in amendments to the final bill.
Furthermore, while the NHI Act has been signed into law, none of the sections have been promulgated yet.
This means as it stands, they are not in effect.
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BusinessTech reports that the minister’s current approach to the NHI’s opposition will result in the act failing before a court of law.
The NHI is already facing two legal challenges, with more lurking close by if the government doesn’t make the necessary amendments.
Discovery Health has recently indicated that it intends to join the Health Funders Association (HFA) to challenge the NHI for being unimplementable and unconstitutional.
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The legal challenges against the NHI are being launched based on both technical implementation of the bill as well as the rationality that was applied in processing and approving the bill into law.
In addition, the government is also facing internal pushback from the founding members of the Government of National Unity, namely the DA and the IFP, who are reportedly not happy with the bill’s progression.
Lastly, there is no funding in the country’s budget for the implementation of the NHI.
It is evident that any alterations to tax measures will be met with opposition from taxpayers.
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Picture: Jeffrey Abrahams / Gallo Images
