IRR: NHI should be on the GNU agenda

NHI remains one of the biggest unknown factors in the GNU’s plans for South Africa. It must be discussed and government must be transparent about its cost.

As the Government of National Unity (GNU), formed after weeks of intense negotiations between the country’s largest parties, gears up for the Opening of Parliament Address tomorrow, the time has come for it to focus on key policy priorities.

Clarity is needed on a number of serious policy differences between the GNU partners, and high on this list is the National Health Insurance (NHI) scheme.  

The ANC made NHI a key part of its electoral pitch to South Africans in the lead up to the May 29 election, with the NHI Bill being signed into law in an unusual public ceremony. While the full implementation of the NHI remains some way off, tomorrow’s Opening of Parliament Address presents the ideal opportunity for coalition partners to discuss this contentious legislation.

NHI is still uncosted and it is not clear where the money to pay for it will come from, especially in the context of an economy in which growth remains elusive, and debt costs have become an ever-increasing component of government spending.

Open and frank discussions about the unaffordability of NHI and its implications for South African taxpayers should be a top priority for the government.

In the spirit of newfound transparency in public finance, recently illustrated by their new Cabinet colleagues, the Ministers of Health and Finance should take South Africans into their confidence about the true cost of the NHI.

Said researcher Chris Patterson: “The sooner the GNU comes clean on the cost, the sooner it could be open to alternatives, such as the IRR’s proposed health care policy solutions, which would reduce the burden on the public health system through tax-funded vouchers, allowing South Africans to choose who provides their health care.”

A lack of further engagement on NHI could be disastrous for both the public and private health care systems, as well as the broader economy.  It is vital that the partners in the GNU find clarity on NHI.

You can read more the IRR’s alternative health care proposal here.

Media contacts: Marius Roodt, Head of Campaigns Tel: 082 779 7035 Email: marius@irr.org.za

Chris Patterson, Researcher Tel: 063 682 5035 Email: chrisp@irr.org.za

Media enquiries: Michael Morris Tel: 066 302 1968 Email: michael@irr.org.za