Release of the National Health Insurance Green Paper

August 2010

Health Minister Aaron Motsoaledi launched the Green Paper on the National Health Insurance (NHI) during a post-Cabinet media briefing in Pretoria on Thursday, 11 August 2011.

He described these first steps towards establishing the national health insurance as "truly historic".

The Minister made it clear that the NHI is seen as a 14-year project and that the first five years will consist of a process of building and preparation to give effect to NHI.

The cornerstone of the proposed system of NHI is universal coverage. NHI is a financing system that will ensure the provision of essential healthcare to all citizens of South Africa (and legal long-term residents) regardless of their employment status and ability to make a direct monetary contribution to the NHI Fund. This is the essence of NHI.

Key areas that the Green Paper covers:

Membership of NHI
Contributions to NHI
Healthcare benefits, services and exclusions
The role of medical schemes and private healthcare
Quality of healthcare
Resource management

What will happen in the first five years of NHI implementation?

The first five years of NHI will include pilot studies and strengthening the health system in the following areas:

Management of health facilities and health districts
Quality improvement
Infrastructure development
Medical devices, including equipment
Human Resources planning, development and management
Information management and systems support
Establishment of an NHI Fund

The purpose of the Green Paper is to outline the broad policy proposals for the implementation of NHI. The document is published for public comment and engagement on the broad principles. After the consultation process, the policy document (or White Paper) will be finalised. Thereafter, draft legislation will be developed and published for public engagement. After public engagement, the legislation will be finalised and submitted to Parliament for consideration. After Parliamentary approval, the Bill has to be approved by the President of the Republic.

Alexis Sacks

Dave Rich

Important Note:
The information contained in this newsletter is of a general nature, and may in certain circumstances be subject to misinterpretation. Consequently, we recommend that our advice be sought when acting upon the information contained herein. Whilst every care has been taken in the compilation of this Newsletter, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions.

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