MEDICAL AID
Vital employers do not use NHI to cut medical benefits for employees By Kenny Khoza
F
urther clarity on the government’s proposed National Health Insurance (NHI) initiative should be welcomed by all stakeholders, yet with the green paper suggesting that the project will be phased in over the next 14 years, it is essential employers do not stop offering medical scheme benefits to employees in light of the forthcoming change. According to Andre Jacobs at Aon Hewitt South Africa, currently only around 18% of South Africans have some form of medical scheme cover through private medical schemes. “This is a shocking figure and demonstrates exactly why it is so essential to take this step towards providing essential healthcare to all South African citizens. We can no longer tolerate a healthcare system where only those who can pay for healthcare will have access to it.” However, he warns that with the NHI project only expected to begin properly offering medical care to all South Africans from 2025, it is important that those without healthcare currently are not forgotten in the interim. “I would urge all businesses with the capacity for offering medical schemes to their current employees to do so now. There is still much to be both discussed and decided upon before NHI is actually implemented and it is vital not to exclude people from quality healthcare in the meantime.” “This is a hugely complex project and we believe that with such far-reaching changes being introduced and the very long timeframe involved, further consultation – on top of that stated by the government – will be needed throughout the project.” According to the green paper, 10 health districts are to be selected to pilot the NHI proposals from 2012, which will then be expanded to 20 pilot projects in 2013. In addition, the first five years of NHI will include both the pilot studies and a strengthening
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People Dynamics November 2011
of the current health system. Jacobs says that destructive criticism of NHI will only prolong a human tragedy that denies most South African citizens access to quality healthcare and should be avoided at all costs. “We need progressive and consultative forums under the National Economic Development and Labour Council (NEDLAC), whereby we can look at the objectives and evaluate progress, change plans, strategy or tactics, as we progress on this path to human dignity.” However, Jacobs says even after the introduction of NHI, private medical schemes are still expected to form part of South Africa’s healthcare system. “The minister made it clear that it is not the intention of Government to abolish private medical schemes if individual members wish to retain their membership. In addition, while the actual benefit set of what will be covered under the scheme was not defined, it was made clear that health benefits provided under the NHI system will not be fully comprehensive. “Following the introduction of NHI, there may still be a strong case for employers to offer additional top up medical benefits to employees, such as dread disease and critical illness policies. These can prove invaluable at the time of any claim by helping to ease the suffering for the patient.” Aon South Africa is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and speciality insurance underwriting. The company employs more than 1500 professionals in its 17 offices in South Africa. Aon employs over 2000 people on the African continent. Aon South Africa’s head office is based in Sandton, Johannesburg.