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NHI: Where has the money gone?

 

BizCommunity 20 March 2018 – An additional R4.2bn has been allocated to National Health Insurance (NHI) over the medium term in the latest budget. The question is what has been done with the money that has already been allocated to the plan and how will the new funds will be used?

“The NHI isn’t operational and the government still has a way to go before it will come into effect. As the NHI seems still to be in a conceptual and planning phase, it’s time to question what infrastructure is being implemented – even if this infrastructure is only in administrative terms – to bring the programme to life,” says Cathie Webb, an executive at the South Africa Payroll Association. An additional R700m has been set aside for the NHI for the 2018/19 period, R1.4bn for the 2019/20 period and R2.1bn for the 2020/21 period – all to be funded through amendments to the medical tax subsidy. These funds, however, are far from what the NHI will cost.