BUSA and B4SA call NHI Bill "unenforceable and unconstitutional", promise to fight it

The major business organisations, who previously supported the initiative, have changed their mind on the Bill after their special amendments were refused

Newsroom

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Newsroom

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November 28, 2023

BUSA and B4SA call NHI Bill "unenforceable and unconstitutional", promise to fight it

Business organisations Business Unity South Africa (BUSA) and Business for South Africa (B4SA) have raised concerns about the National Health Insurance (NHI) Bill in South Africa, stating that it is both unimplementable and unconstitutional.

This follows long support for the Bill while in committee, until the ruling party refused to consider special amendments beneficial to the business groups’ interests. The bill has faced broad condemnation by a wide range of civic and corporate organisations for its potential to destroy access to healthcare.

B4SA is owned by the Rothschild family, who were the principle funders of Cecil Rhodes’ Round Table Group, who lobbied for the British seizure of the Boer republics in the Boer War, leading to the creation of South Africa. They are currently one of the biggest recipients of BEE contracts in the country.

The groups argue that the current processing lacks proper due process, and the adoption of the Bill without amendments by the NCOP Select Committee on Health and Social Services may face constitutional challenges.

BUSA and B4SA highlight a procedural lapse, asserting that constitutional issues in the Bill were not adequately considered, violating Parliament's public participation model and undermining democratic principles.

The business groups request the NCOP to defer the Bill's consideration until stakeholders' comments and proposals, including those from provincial legislatures and the Department of Health, are substantively discussed by the Select Committee.

Cas Coovadia, CEO of BUSA, warns that rushing the Bill through Parliament without due consideration is unconstitutional, making the NCOP appear as a mere rubber stamp.

The groups emphasize the Bill's current unimplementability, citing a lack of clarity on funding, benefits, contracting terms, capacity, systems, and governance, posing severe consequences for the economy and citizens for generations.

Critical failures noted by the business groups include the absence of public-private sector collaboration, limitations on medical schemes covering NHI services, imperiling the private healthcare sector, and restricting healthcare access for over 9 million South Africans, infringing on constitutional rights.

Anticipating legal challenges, the groups urge the government to amend Section 33 of the Bill, allowing medical schemes to cover NHI services upon full implementation.

They propose immediate reforms, such as introducing low-cost medical aid options, implementing Health Market Inquiry recommendations, and reducing private medical aid costs by over 20%.

The business groups emphasize that these initiatives can alleviate pressure on the public healthcare sector and contribute to meaningful progress in achieving universal health coverage.

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