What Will the National Health Insurance Bill Mean for You?

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The National Health Insurance Bill is now South African law. However, it remains unclear when it will come into effect. The knock-on effects of the NHI Bill are coming though. Let’s examine the effects on you as a South African. First, let’s consider the rationale for the government bringing in this new scheme.

The Reasoning Behind the National Health Insurance Bill

The South African Government’s objective is crystal clear. Obamacare in the US and the National Health Service in the UK are guiding lights. Yet the National Health Insurance Bill has its origin story in the South African constitution.

“The objective of the NHI Bill is to provide universal access to quality health care for all South Africans as enshrined in the Constitution. The Constitution recognizes healthcare as a fundamental human right. It states that “everyone has the right to have access to health care services… the state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of these rights and no one may be refused emergency medical treatment.”

There’s an emphasis on the NHI Bill making healthcare available to one and all. It’s being set up is to guarantee Universal Health Coverage (UHC) in South Africa. Medical treatment should be accessible to Blacks as much as it is to whites; to those in poverty as much as the well-off.

If that smacks of an election promise to you, don’t be surprised. Opponents of the government insist the timing for the National Health Insurance Bill was deliberate as ANC sought to attract more votes. After all, 2024’s the Year of Elections.

Where will South Africa source capital for the NHI Fund? The ruling party identifies 3 avenues. They are the following:

1. Taxes in general
2. Contributions of South Africans above a certain salary
3. Employee contributions on a monthly basis

In the immediate future, you won’t detect an effect on private healthcare. South Africans will still be able to use their medical insurance to set up appointments with non-state hospitals and practitioners. Prepare for the eventuality though “when the NHI is fully implemented the role of medical schemes will change as they will provide cover for services not reimbursable by the NHI Fund.”

RIF Trust’s Perspective on the NHI Bill

Our South African Strategic Partner Ilana van Huyssteen-Meyer points out a worrying disparity between National Insurance Bill theory and how it will be applied. This will deny a route to quality healthcare for tax-paying South Africans. Yet Van Huysteen-Meyer provides words of comfort to her compatriots with fresh anxieties, explaining that there are investment migration fixes for this new quandary.

“The National Health Insurance Bill is well-intended. Tax-paying South Africans though will foot the bill, spending considerably more for healthcare. This means the 14% of the population who can afford health insurance pay for the 86% who can’t. Let there be no doubt: the South African Government will not finance this national health scheme. A new residency is your escape route. This guarantees that you and your loved ones can rely on medical treatment that mirrors your hopes and requirements. I recommend you explore the likes of the Canada Start-up Visa and the Portuguese Golden Visa.”

How to Proceed With Residency by Investment

Do not underestimate the power of investment migration to return choice to you as an investor. It’s evident that you’re paralyzed by economic and political events in your native South Africa. To find out how you can benefit from Residency by Investment Programmes, get in touch with an investment migration expert such as RIF Trust. So, contact us now and we’ll show you how we can help.