Health association takes legal action against NHI Bill

The Health Funders Association this week launched a legal challenge against the National Health Insurance Act, saying it was unaffordable, unworkable and unconstitutional.

- Aarti Bhana

President Cyril Ramaphosa signed the Act into law in May last year, days before the country headed to the polls for general elections.

The ANC, which governed the country solely until being forced into a national coalition after the polls, says the NHI is intended to provide universal and comprehensive health coverage to all South Africans.

But it has faced fierce criticism from the private healthcare sector and parties such as the Democratic Alliance, which was the official opposition until it joined the government of national unity last year.

Health Funders Association chief executive Thoneshan Naidoo acknowledged this week that “South Africa needs a healthcare system that delivers equitable, quality care to all [and] we fully support that vision.”

But he added: “In its current form, and without private sector collaboration, the NHI Act is fiscally impossible and operationally unworkable, and threatens the stability of the economy and health system, impacting everyone in South Africa.”

The association filed its application at the Pretoria high court, joining five other medical entities that are fighting the law.

The association, which represents 20 medical schemes and three administrators, collectively covering 46% of the private healthcare market, said it was taking this legal step to help ensure that the national health reform is “grounded in constitutional principles, financial realism and patient choice”.