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Europe, News feed Date: 09 July, 2024

How Will the National Health Insurance Bill Affect You?

How Will the National Health Insurance Bill Affect You?

The National Health Insurance Bill has been passed into law in South Africa. Yet we do not know when it will become effective. The consequences of the NHI Bill are coming though. Let’s discuss how it will affect you as a South African. First, let’s look at the reasons for the government introducing this new scheme.

The Rationale Behind the National Health Insurance Bill

The South African Government is transparent with its intentions. Obamacare in the US and the National Health Service in the UK are key influences. Although the National Health Insurance Bill has its roots in the South African constitution.

“The objective of the NHI Bill is to provide universal access to quality health care for all South Africans as enshrined in the Constitution. The Constitution recognizes healthcare as a fundamental human right. It states that “everyone has the right to have access to health care services… the state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of these rights and no one may be refused emergency medical treatment.”

There’s a focus on the NHI Bill democratizing health care. Its long-term objective is to secure Universal Health Coverage (UHC) in South Africa. Medical treatment should be available to Blacks as much as whites; to the impoverished as much as the wealthy.

If that sounds like an election manifesto, in many ways it was. Critics claim the motivation for the National Health Insurance Bill stems from an ANC attempt to garner more votes. 2024’s the Year of Elections, after all.

How will South Africa finance the NHI Fund? The country’s government outlines 3 sources. They are as follows:

  1. General taxation
  2. Contributions of South Africans earning over a set limit
  3. Monthly employee contributions

In the short and medium term, there won’t be a noticeable effect on private healthcare. South Africans will be able to continue to rely on their medical insurance to schedule appointments with hospitals and practitioners outside the state sector. Yet “when the NHI is fully implemented the role of medical schemes will change as they will provide cover for services not reimbursable by the NHI Fund.”

Latitude’s Take on the NHI Bill

Our South African Strategic Partner Ilana van Huyssteen-Meyer identifies a fundamental disconnect between the theory behind the National Insurance Bill and what will happen in practice. This will have a devastating effect on the access to quality healthcare for tax-paying South Africans. Still, Van Huysteen-Meyer does offer some reassurance to her compatriots with concerns, revealing that there are investment migration solutions to this problem.

“Yes, the National Health Insurance Bill is a noble idea. However, tax-paying South Africans could end up paying significantly more for the health insurance, or, worse, not have access to quality care at all. The 14% of South Africans who can afford health insurance are being penalized to subsidize the 86% who can’t. Let’s be clear: the South African state will not fund this national health scheme. Thankfully, you can invest in a new residency . This ensures that you and your loved ones continue to receive healthcare that matches your expectations and needs. I would advise you to look into the likes of the Canada Start-up Visa and the Portuguese Golden Visa.”

Read about 2024’s National Health Insurance Bill in South Africa.

How to Take The Next Steps To Residency by Investment

Do not undervalue the force of investment migration to compensate for lost options. It’s obvious that you’re hamstrung by economic and political developments in your home country. To discover the full potential of Residency by Investment Programmes, consult an investment migration specialist such as Latitude Group. So, don’t delay and contact us today.

How Will the National Health Insurance Bill Affect You?

Date: 09 July, 2024

Posted in: Europe, News feed