An overwhelming majority of taxpayers feel that the National Health Insurance (NHI) system will have a negative impact on healthcare in South Africa.
This was one of the findings in a survey carried out by Tax Consulting South Africa, with the NHI raising many questions about who will fund it and what impact it will have on healthcare workers and patients in the long run.
President Cyril Ramaphosa signed the NHI bill into law on May 15, 2024, just two weeks before the May 29 elections.
The implementation of the NHI is expected to be gradual, taking place through various stages over many years. It also faces the threat of numerous legal challenges, particularly from within the private healthcare sector.
In the survey, 84% of respondents said they opposed the NHI, believing that it would result in higher costs for taxpayers and less access to quality healthcare.
A further 82% of respondents felt that the NHI would have a negative effect on healthcare in South Africa, showing a lack of confidence in the government’s ability to implement it effectively and improve both access and standards.
Another 81% of the respondents felt that the implementation of NHI would lead to a significant number of medical professionals emigrating to other countries, leading to staff shortages in local healthcare facilities.
Where will the money come from?
Over half of respondents to the survey believed that the NHI would bring a direct increase in taxes for South Africans.
The NHI Act already lists a surcharge on personal income tax as one of its potential funding sources, along with the removal of the medical tax rebates and reallocating the bulk of the provincial health budget to the NHI fund.
“The surcharge on personal income tax, employee payroll taxes and a removal of the medical tax credits signals a significant tax burden for SA taxpayers, a fear raised by the participants on the NHI survey,” Tax Consulting SA said in a statement.
Further to that, 77% of respondents felt that the NHI was a political manoeuvre rather than a genuine effort to equalise healthcare access.
It must be borne in mind however, that the respondents to this study were all taxpayers, meaning they are more likely to be within the current private healthcare system, unlike the less affluent South Africans whose healthcare situation the NHI is purportedly aiming to improve.
IOL