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Public Health News South Africa

NHI costs will rise to R225 billion in 15 years

South Africa's National Health Insurance (NHI) scheme will cost taxpayers R225 billion by 2025 when it is fully implemented according to a report published on Times Live today. It quotes Health Minister Aaron Motsoaledi, expenditure on the plan will rise to R103 million this year.

The Department of Health published its Green Paper on the plan earlier this month but it was released for public comment yesterday. The public has three months to submit comments to the department.

Motsoaledi says that the operational costs were expected to reach R873 million and implementation costs would amount to R7,6 billion during the 2012 financial year.

Times Live says that the NHI will be funded through a combination of general tax revenue for personal healthcare services and a payroll-linked contribution to National Health Insurance.

Meanwhile Fin24 reports that people who earn more than a defined threshold will be required to contribute to the NHI but the amount has not yet been determined by the Treasury. It says that Finance Minister, Pravin Gordhan confirmed that money would come from four different sources: General taxation; mandatory contributions from employees and employers and from the fiscus.

Fin24 says the NHI aims to provide all South Africans and legal long-term residents with access to quality basic healthcare services. It says that private healthcare practitioners will play a crucial role in making the service a success

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