The National Health Insurance Act: Possible private health funding reform scenarios

The passing of the National Health Insurance (NHI) Act was an important milestone in the reform of the South African healthcare system and will have a profound impact on the funding and provision of healthcare in the country. While the impacts will be felt across the entire system, the focus of...

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Main Authors: G Solanki, V Brijlal, R Morar, J Cornell, N Myburgh, S Cleary
Format: Article
Language:English
Published: South African Medical Association 2025-06-01
Series:South African Medical Journal
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Online Access:https://samajournals.co.za/index.php/samj/article/view/2550
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author G Solanki
V Brijlal
R Morar
J Cornell
N Myburgh
S Cleary
author_facet G Solanki
V Brijlal
R Morar
J Cornell
N Myburgh
S Cleary
author_sort G Solanki
collection DOAJ
description The passing of the National Health Insurance (NHI) Act was an important milestone in the reform of the South African healthcare system and will have a profound impact on the funding and provision of healthcare in the country. While the impacts will be felt across the entire system, the focus of this article is on the potential impact on the private health funding sector, which currently enables financial risk protection for those with private health insurance. This article highlights some key trends and challenges in this sector from 2007 to 2022 and then examines two possible extreme scenarios for the sector during the NHI transition phases. In the first scenario, a passive’ process is assumed. This is characterised as a continuation of the current policy environment, where the sector is allowed to continue a downward trajectory without any specific actions to maintain its viability during the transition. A key risk in this scenario is that the sector becomes unsustainable before the NHI can provide an alternative financial risk protection mechanism to those currently protected through private health insurance. In the second scenario, an active’ process is followed, where steps are taken to keep the sector sustainable during the NHI transition. While part of this would include the purposive shifting of government-related funding from the private funding sector to the NHI, other actions would include regulatory and other reforms necessary to keep the private funding sector viable, which would also provide a stronger foundation for the NHI.
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spelling doaj-art-10cedf20d02f4b4b8b0743e342a294882025-08-20T02:09:37ZengSouth African Medical AssociationSouth African Medical Journal0256-95742078-51352025-06-01115510.7196/SAMJ.2025.v115i5.2550The National Health Insurance Act: Possible private health funding reform scenariosG Solanki0V Brijlal1R Morar2J Cornell3N Myburgh4S Cleary5Health Economics, Health Systems Research Unit, South African Medical Research Council, Cape Town, South Africa; Health Economics Unit, School of Public Health, Faculty of Health Sciences, University of Cape Town, South Africa; NMG Consultants and Actuaries, Cape Town, South AfricaClinton Health Access Initiative, Pretoria, South AfricaDirector and Head Nelson Mandela University Medical School, Faculty of Health Sciences, Nelson Mandela University, Gqeberha, South AfricaDirector of Institutional Development and Planning (retired), Nelson Mandela School of Public Governance, University of Cape Town, South AfricaFaculty of Dentistry and World Health Organization Collaborating Centre for Oral Health, University of the Western Cape, Cape Town, South AfricaHead of Department and Director, School of Public Health, Faculty of Health Sciences, University of Cape Town, South Africa The passing of the National Health Insurance (NHI) Act was an important milestone in the reform of the South African healthcare system and will have a profound impact on the funding and provision of healthcare in the country. While the impacts will be felt across the entire system, the focus of this article is on the potential impact on the private health funding sector, which currently enables financial risk protection for those with private health insurance. This article highlights some key trends and challenges in this sector from 2007 to 2022 and then examines two possible extreme scenarios for the sector during the NHI transition phases. In the first scenario, a passive’ process is assumed. This is characterised as a continuation of the current policy environment, where the sector is allowed to continue a downward trajectory without any specific actions to maintain its viability during the transition. A key risk in this scenario is that the sector becomes unsustainable before the NHI can provide an alternative financial risk protection mechanism to those currently protected through private health insurance. In the second scenario, an active’ process is followed, where steps are taken to keep the sector sustainable during the NHI transition. While part of this would include the purposive shifting of government-related funding from the private funding sector to the NHI, other actions would include regulatory and other reforms necessary to keep the private funding sector viable, which would also provide a stronger foundation for the NHI. https://samajournals.co.za/index.php/samj/article/view/2550Health financing reform, National Health Insurance, Private Sector, South Africa
spellingShingle G Solanki
V Brijlal
R Morar
J Cornell
N Myburgh
S Cleary
The National Health Insurance Act: Possible private health funding reform scenarios
South African Medical Journal
Health financing reform, National Health Insurance, Private Sector, South Africa
title The National Health Insurance Act: Possible private health funding reform scenarios
title_full The National Health Insurance Act: Possible private health funding reform scenarios
title_fullStr The National Health Insurance Act: Possible private health funding reform scenarios
title_full_unstemmed The National Health Insurance Act: Possible private health funding reform scenarios
title_short The National Health Insurance Act: Possible private health funding reform scenarios
title_sort national health insurance act possible private health funding reform scenarios
topic Health financing reform, National Health Insurance, Private Sector, South Africa
url https://samajournals.co.za/index.php/samj/article/view/2550
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