Module 6: Building Blocks - Health Financing: ONLINE
Session 4 - Health Financing in South Africa
- Spark Questions
- Session summary and reflection
- Learning Outcome
- Concluding Questions: Defining Health & Health Systems Sciences
Spark Questions
What do you know about the plans to implement National Health Insurance in South Africa? Do you think this is a good strategy to address issues of equity and access to healthcare services?
NHI is a Finance system to improve access to health care and better equity in South Afirca. Its an initiative where medicne will become cheaper
It is a very good stratergy because more people will have more access to health care and have a more healthier environment
Session summary and reflection
- In South Africa, health funding is currently raised through national tax revenue, distributed to provincial and local governments through an equitable share formula. Provinces and municipalities can also generate additional funds through sources like motor vehicle licensing and municipal taxes. Budgets are allocated to healthcare facilities annually, with spending restricted by line items like salaries and equipment
- The proposed National Health Insurance (NHI) aims to provide universal health coverage (UHC) by pooling funds in a National Health Insurance Fund (NHIF). Unlike the current system, where funds are distributed across various levels of government, the NHIF will act as a single strategic purchaser of health services from both public and private providers, improving efficiency and equity in healthcare access. NHI promises to remove financial barriers to access, ensure services are based on need rather than ability to pay, and provide financial protection by eliminating payments for hospital services. The shift to NHI is expected to enhance the quality, efficiency, and accessibility of healthcare for all South Africans
Learning outcome - What is Health Systems Science?
- Describe how revenue is raised and distributed for the provision of health services in South Africa.
- Tax
- public and private Health Insurance
- Out-of-Pocket Payments
- NHI
- Explain how National Health Insurance (NHI) will change the way that revenue is raised and distributed for the provision of health services in South Africa.
- Revenue Collection: Instead of relying heavily on medical schemes and out-of-pocket payments, NHI will pool funds from a combination of sources, including general taxes, payroll taxes, and possibly additional contributions from employers and employees. The goal is to create a more equitable and comprehensive funding base.
- Centralized Fund: The funds collected for NHI will go into a central National Health Insurance Fund (NHIF). This fund will act as a single purchaser of health services, buying services from both public and private providers.
- Distribution of Funds: NHI will redistribute resources based on healthcare needs rather than individual ability to pay, allowing funds to be allocated more fairly across all regions and income groups. This will reduce the gap between the quality of care available in public and private sectors.
- Discuss the advantages of the NHI.
- Better Health Care access