South Africa Set to Introduce National Health Insurance Plan

Posted August 11th, 2011 at 11:05 am (UTC-5)
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South Africa’s government is set to propose a national health insurance plan aimed at improving health care services for the poor.

Health Minister Aaron Motsoaledi says the goal of the plan, known as NHI, is to ensure that everyone in the country receives essential healthcare, regardless of their employment status or ability to make a direct financial contribution.

The health ministry estimates that 84 percent of South Africa’s population depends on public hospitals and clinics.

The government plans to publish legislation for the NHI on Friday.

Last year, the ruling African National Congress estimated the plan will cost $18 billion in 2012, rising to $37 billion by 2025.

Finance Minister Pravin Gordhan says the program will be funded through various sources including tax revenues, contributions from employers and surcharges.

South Africa currently spends 8.5 percent of its national budget on public health care, but service is generally poor. The system is burdened by poor infrastructure, corruption, and poorly-trained workers.