Alpha Ramushwana16 May 2024 | 4:03

Ramaphosa gives brief account of how govt plans to fund NHI

The president during his signing of the NHI Bill into law said existing funds that have been earmarked for healthcare would be redirected to ensure universal access to medical care.

Ramaphosa gives brief account of how govt plans to fund NHI

President Cyril Ramaphosa signs the National Health Insurance Bill into law on 15 May 2024. Picture: GCIS

JOHANNESBURG - President Cyril Ramaphosa has given a brief account of how government plans to fund the National Health Insurance (NHI).

He said existing funds earmarked for healthcare will be redirected to ensure universal access to medical care.

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Ramaphosa was speaking at the Union Buildings in Tshwane on Wednesday, where he signed the controversial NHI Bill into law.

Chapter 7 of the NHI White Paper stipulates that new taxation options and an increase in income tax may be considered at a later stage to fund the NHI.

But Ramaphosa said various other financial resources will be sought to back the legislation.

“This concept of solidarity proposes a comprehensive strategy that combines various financial resources, including both additional funding and reallocation of funds already in the health system.”

He said financial hurdles facing the NHI would be addressed.

“This approach ensures contributions from a broader spectrum of society, emphasising the shared responsibility.”

Meanwhile, Minister of Finance Enoch Godongwana is expected to give a detailed funding model for the NHI soon.