What does the NHI mean for employers — and employee benefits?

The National Health Insurance (NHI) Bill signifies a well-constructed framework for SA’s healthcare system. It represents a crucial step towards addressing disparities in access to basic health care and aims to provide equitable and quality care to all citizens, regardless of their socioeconomic backgrounds.

There have been many arguments, both in support of and against the NHI Bill since it was introduced to parliament in 2019. With the bill having been passed by the National Assembly in June, it has once again become a hot topic for debate.

However, it’s important that a few critical issues are taken into account during such discussions:

• Historically, only about 20% of South Africans can afford private health care. This means more than 80% of the population relies on public health care and its infrastructure.
• Most medical scheme members join private health care via employment, but many have shared concerns that the ever-increasing premiums are eroding away their disposable income.

Of the portion of the population who can afford it, most choose private health care so they can have immediate access to private care as and when needed. This level of convenience and security is not easily accessible in the public sector due to lack of quality infrastructure. However, it should be available to all citizens.

For employers who provide private healthcare benefits to their employees, the passing of the NHI Bill has further implications, and may mean they want to reassess such benefits.

Offering private healthcare benefits helps attract and retain employees. However, as health care costs rise, businesses are forced to pay high medical subsidies, which affect their profits. As mentioned, increasing premiums also affect their employees as they may have less disposable income as a result.

How can businesses reap the benefits of offering healthcare benefits without incurring high costs? And, is it possible to find a compromise between the NHI and current private medical insurance, utilising the advantages of both public and private healthcare systems, that will benefit employers and their employees?

Given the potential impact the NHI Bill’s framework may have on employers and employee benefits in the future, businesses must now reflect on a successful way forward.

Some of the biggest questions to be addressed include:

• What steps should business SA take to navigate a hybrid healthcare system?
• Should employers who provide private healthcare benefits to their employees reconsider their value proposition?
• What is the actual value proposition between cost vs convenience vs employee preference?

These questions will be unpacked by a panel of experts during an upcoming Business Day Dialogue, hosted in partnership with ASI Financial Services, on August 16.

Moderated by media personality and best-selling author Joanne Joseph, this panel will include:

• Dr Nicholas Crisp, deputy director-general of the NHI;

• Anthony Govender, chief visionary officer of ASI Financial Services;

• Prelisha Singh, head of public law at Webber Wentzel;

• Teshlin Akaloo, MD of NetcarePlus; and 
• Dr Stan Moloabi, principal executive officer of the Government Employees Medical Scheme (Gems).

Their discussion will explore the current healthcare situation and future hybrid scenarios that businesses may encounter with the implementation of the NHI Bill. It will include practical models and strategies that can be adopted by businesses to protect their bottom lines while providing for their employees and their families.

Event details:

• Date: August 16 2023
• Time: 10am to 11.30am
• Venue: Online

Click here to register for this free webinar.

This article was sponsored by ASI Financial Services.