{"id":729751,"date":"2023-11-07T14:36:01","date_gmt":"2023-11-07T12:36:01","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=729751"},"modified":"2023-11-07T14:36:01","modified_gmt":"2023-11-07T12:36:01","slug":"30-more-taxes-for-70-less-healthcare-the-nhis-big-problem","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/729751\/30-more-taxes-for-70-less-healthcare-the-nhis-big-problem\/","title":{"rendered":"30% more taxes for 70% less healthcare &#8211; the NHI&#8217;s big problem"},"content":{"rendered":"\n<p>The National Health Insurance Bill (NHI) needs to raise billions to reach the Department of Health&#8217;s grand vision, but millions of South Africans could see a dramatic reduction in how much healthcare they receive. <\/p>\n\n\n\n<p>Although the National Assembly passed the NHI Bill earlier this year, it has received objections from medical schemes, doctors, business leaders, the parliament\u2019s own legal service and South Africa&#8217;s Finance Minister. <\/p>\n\n\n\n<p>Speaking on the <a href=\"https:\/\/www.youtube.com\/watch?v=8vYWJUlbjCA\" target=\"_blank\" rel=\"noreferrer noopener\">PSG Think Big series<\/a>, Discovery Group CEO Adrian Gore said that the NHI in its current form is unworkable due to its proposed funding model. <\/p>\n\n\n\n<p>He noted that increasing taxes is currently the only way to get the additional R200 billion that the Department of Health said is needed for the system. <\/p>\n\n\n\n<p>This would require potentially raising VAT from 15% to 21.5% and increasing personal income taxes by 30% or more. <\/p>\n\n\n\n<p>However, these tax raises will only take South Africa&#8217;s average healthcare spend per person from R465 to around R680 per month. <\/p>\n\n\n\n<p>&#8220;Now the medical scheme members &#8211; or the employed sector &#8211; who are funding that (the tax increases) spend about R2,400 per person per month,&#8221; Gore said. <\/p>\n\n\n\n<p>&#8220;So, what you would see happening if you did that, <strong>you&#8217;d raise taxes for employed people by 30%, and you&#8217;d lower their healthcare by 70%. You&#8217;d go from R2,400 per month to R680 per month.<\/strong>&#8221; <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Adrian-Gore.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"430\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Adrian-Gore.jpg\" alt=\"\" class=\"wp-image-281221\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Adrian-Gore.jpg 640w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/11\/Adrian-Gore-300x202.jpg 300w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><figcaption class=\"wp-element-caption\">Discovery Group CEO Adrian <\/figcaption><\/figure><\/div>\n\n\n<p class=\"has-medium-font-size\"><strong>Not all bad <\/strong><\/p>\n\n\n\n<p>However, Gore, like other members of the medical community, still believes that universal healthcare envisioned by the NHI could work &#8211; as long as the private sector is involved. <\/p>\n\n\n\n<p>He said that many other countries &#8211; including the US, Australia, the UK and more &#8211; have an effective blend of private and public healthcare systems. <\/p>\n\n\n\n<p>Although Gore is not yet sure how the NHI would work, he said that collaboration between the private and public sectors could find solutions to make it function- much like their collaboration during the vaccine rollout. <\/p>\n\n\n\n<p>Moreover, the CEO is hopeful that low-cost benefit options currently with the Council for Medical Schemes get approved &#8211; as this would allow millions more to access private healthcare and take some of the burden off the state. <\/p>\n\n\n\n<p>With the NHI also a decade or two away from being implemented, he hopes that this forms part of the tapestry of the NHI &#8211; and not a threat. <\/p>\n\n\n\n<p>&#8220;I think healthcare is so complex &#8211; so anything that works, you need to do more of, and take the burden off things that don&#8217;t work,&#8221; he said. <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a rel=\"noreferrer noopener\" href=\"https:\/\/businesstech.co.za\/news\/energy\/729685\/eskom-expands-big-plan-to-cut-load-shedding-in-residential-areas\/\" target=\"_blank\">Eskom expands big plan to cut load shedding in residential areas<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/businesstech.co.za\/news\/industry-news\/729213\/the-2023-digital-marketing-conference-is-sold-out\/\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discovery Group CEO Adrian Gore dives deeper into the NHI&#8217;s funding problem. <\/p>\n","protected":false},"author":95,"featured_media":673119,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[4883,26],"class_list":["post-729751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-opinion","tag-discovery","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/729751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=729751"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/729751\/revisions"}],"predecessor-version":[{"id":729781,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/729751\/revisions\/729781"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/673119"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=729751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=729751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=729751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}