The cost of the NHI

The much-maligned National Health Insurance (NHI) bill has been tabled for Parliament’s consideration. Plans to prevent its rollout are already well underway, as medical professionals and opposition political parties vehemently oppose the proposals.

NHI in brief

  • Opponents believe that NHI would essentially be another state-owned entity – potentially failing, like Eskom, Denel and SAA
  • The taxpayer will fund the NHI
  • General tax revenue will include transferring funds from provincial health budgets to the NHI Fund
  • Taxpayers’ medical scheme fees tax credit will be reallocated to the NHI Fund
  • A payroll tax (employer and employee) will be implemented
  • A surcharge on personal income tax will be implemented
  • The bill obscures what the NHI rollout would cost, but three figures include R165 billion, R259 billion and R450 billion
  • There are roughly 21 million taxpayers in South Africa
  • Only 30% of them – about 7.6 million people – are actually registered to pay tax or sit above the annual income threshold
  • Taxpayers would pay between R7 857 and R21 428 per person for NHI
  • If everyone in South Africa had to contribute, they would pay between R2 807 and R7 656 per person

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My Office News Ⓒ 2017 - Designed by A Collective


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