General News

NHI in sharp focus during SA’s Health Budget Vote

Date: Jul 12, 2024

South Africa’s Health Minister, Aaron Motsoaledi, says government is subsidising R70 billion ($ 3.89 billion) for private healthcare every year.

He says about 1.3 million public representatives and public servants are on medical aid.

Motsoaledi was delivering his budget vote speech during a mini plenary of the National Assembly.

He came to the defence of the National Health Insurance (NHI) fund which is aimed at providing universal healthcare for all citizens, particularly the poor.

Government is facing litigation over the NHI Act after President Cyril Ramaphosa signed the bill into law in May.

Motsoaledi highlighted how the private healthcare system is benefiting from the state. “Our government, the state, subsidises private healthcare for the rich in a way (that’s) unimaginable.

“About 1.3-million public servants plus all Members of Parliament, honourable members standing in front of whom I’m standing and honourable members and legislatures, and all the judges of our country are subsidised by the fiscus of this country to the tune of R70 billion ($3.89 billion) per annum.

“This comes in the form of medical aid subsidies in our salaries. And any person in our country who is on medical aid, regardless of who their employer is, gets tax rebates from South African Revenue Service. And I am made to believe that these tax rebates amount to R30 billion ($1.67 billion).

“Hence it’s R100 billion ($5.55 billion) that goes out to subsidise us the rich and leave the poor out; and we all know that at the end of the day, we know that this money gets exhausted somewhere around at the end of September/October. And we the rich go back to the public healthcare system at no cost and demand help.

“But a poor person who doesn’t have a medical aid, even if they have the need, which is in the private sector, they cannot go there. So, we the rich are double dipping.”

Various political parties also made their voices heard on the department’s budget.

ActionSA Member of Parliament, Dr Kgosi Letlape, challenged all public servants and public representatives to get their healthcare services from the public sector.

RISE Mzansi says it wants mental healthcare services to be provided at primary health facilities too.

The Economic Freedom Fighters’ Suzan Thembekwayo criticised the current healthcare system, saying the public has lost trust in it.

--SABC--

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