The Congress of South African Trade Unions (COSATU) welcomes the Pretoria High Court ruling prohibiting the Board of Healthcare Funders (BHF) from offering watered down versions of medical aid as an alternative to the National Health Insurance (NHI).
The BHF represents more than 40 medical schemes and administrators. It took its bid to force the industry regulator, Council for Medical Schemes, to allow medical aids to offer low-cost benefit options of their products as a substitute for the NHI. These watered-down options offer basic day-to-day out-of-hospital cover but fail meet the prescribed minimum benefits that all registered South African medical schemes are legally obligated to provide to members.
Prescribed minimum benefits according to the Medical Schemes Act, includes coverage of costs of diagnosis, treatment and care of any emergency medical condition, a limited set of 271 medical conditions plus 26 chronic conditions.
COSATU echoes the sentiment of its vigilant affiliate, the National Education, Health and Allied Workers Union (NEHAWU), that the low-cost benefit options were marketed as an affordable medical aid option for low-income earners, but in fact represent a step back in the quest for universal, equitable healthcare.
The BHF is doing everything in its power to block government from implementing the NHI, including petitioning the Pretoria High Court to overturn President Cyril Ramaphosa signing the NHI into law. COSATU applauds the court for its sober ruling and for stopping the BHF’s pursuit for more profit in its tracks. With entrenched levels of poverty and inequality, South Africa cannot continue to have two parallel health systems, one for those who can afford to pay exorbitant medical aid premiums and another for the poor. The country is in dire need of universal healthcare and that the implementation of the NHI cannot be stalled any further.
The Federation is committed to supporting government to ensure the NHI comes into effect sooner rather than later.
Issued by COSATU
Zanele Sabela (COSATU National Spokesperson)
Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za
