South Africans eagerly await the final decision on the National Health Insurance system. Some are for it, while others against. It is the hope of many that they will get access to private facilities, and even medical aid members have hopes of reduced medical aid costs with the launch of the NHI. The fact of the matter is that all South African taxpayers, whether medical aid members or not, have to contribute towards the National Health Insurance scheme. This added expense may also be a glimmer of hope for medical aid members wanting to reduce their medical expenses.
NHI and the Future of Medical Aid
The National Health Insurance scheme has been rolled out in limited areas within South Africa on a trial basis as of early 2012. Based on this preliminary rollout, the Department of Health and related parties will be in a better position to structure and implement the full National Health Insurance system in a few years. But what about private medical aid? The fact of the matter is that medical aid is not going anywhere for the foreseeable future. Although nobody is sure as yet as to what form the final National Health Insurance will take on, there is certainty among many that South Africans will need to keep funding their own health care needs.
Lower Medical Aid Costs with NHI
As South Africans buckle under the economic strain of the recent financial crisis, coupled with a rising cost of living, it is hoped that the National Health Insurance may offer an alternative to more costly medical aids. It is unlikely that the NHI will ever be able to match the level of service and benefits of medical aid schemes. However, if members could offset at least a portion of their health care expenses through the NHI, then this may mean that they can opt for cheaper medical aid plans.
Medical aid hospital plans are among the more popular medical aid options these days, as members pay for their own out-of-hospital bills but rest assured of in-hospital cover. After all, hospitalisation costs in South Africa are unaffordable for most earning citizens. The hospital benefit on medical aid therefore provides the financial protection that is needed. However, if the NHI does fund out-of-hospital services in the private health sector, would a comprehensive medical aid still be needed? Or would a medical aid hospital plan suffice?
Private Hospital Access with the NHI
These are some of the questions in the mind of the South African taxpayer and medical aid members in particular. State hospitals are not going to change overnight and as many want to avoid these facilities, medical aid hospital plans may provide the ideal cover with concomitant benefits from the NHI. The way in which the National Health Insurance system will shape the South African medical aid industry is yet to be seen. With the popularity of other forms of insurance, like the hospital cash back plan, it will also be interesting to see whether the NHI will have an impact on these type of policies.
Some are fearful as there is talk of tax benefits for medical aid contributions falling away. Others are upset at the thought of more taxes to fund the health care needs of an ever growing population, many of who are dependent on government welfare systems. The bottom line though is that love it or hate it, the National Health Insurance for now seems like a reality in some form or the other. Since the average taxpayer has to bear the financial impact of this system, it is only in their best interests to derive a benefit from the system as well.