The Congress of South African Trade Unions (COSATU) welcomes government’s announcement of a new framework to cap exorbitant medical tariffs through draft block exemptions announced by the Ministers for Trade, Industry and Competition as well as Health, Mr. Parks Tau and Dr. Aaron Motsoaledi, respectively.  The exemptions provide a framework for stakeholders to engage and allow for public input on reasonable and fair medical tariffs.

These are welcome and long overdue interventions.  They are a progressive step towards addressing the Health Markey Inquiry’s findings which found high levels of monopolies, collusion and exorbitant tariffs charged by medical service providers at the expense of patients, their health and the economy. 

The proposed framework signals a positive shift away from allowing medical schemes and service providers to simply set tariffs themselves.  These practices have not only been in conflict with the Competition Act but more importantly made medical care unaffordable for millions of working and middle-class families, including members of medical schemes.  They have seen a rise in co-payments imposed on patients and many service providers refusing to accept medical scheme payments and insisting upon cash from the patient instead.

COSATU looks forward to engaging on the draft exemptions and framework with government, to ensuring they protect the public from being fleeced by unscrupulous service providers and its urgent implementation.  This is a key step towards ensuring universal healthcare as mandated by the National Health Insurance Act.  The Federation commends government led by the African National Congress on this important intervention on behalf of the poor and workers.

Issued by COSATU

Matthew Parks(Parliamentary Coordinator)

Mobile: 082 785 0687

Email: matthew@cosatu.org.za