Johannesburg - The estimated cost assumptions for the implementation of the National Health Insurance (NHI) for South Africa in the White Paper published last December have been called into question by research and public interest bodies.
The White Paper estimates the cost of healthcare under the NHI by 2025 at R256 billion, however several commentators warned that these estimates were done with an optimistic assumption of 3.5 percent annual economic growth.
Several companies, associations and institutions submitted their comments on the NHI in May and June questioning the lack of clarity on funding.
Economics consultancy Econex says its calculations indicate that the total amount required to fund the NHI in 2025 is almost as large as the estimated revenue collected from individuals in the 2015/16 fiscal year.
The Free Market Foundation has done some "back of the matchbook calculations" and estimated the NHI to cost R367.4 billion when fully implemented. Econex says a 16 percent increase in NHI costs will bring the final cost to R357 billion by 2025.
