The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

Solidarity has rejected the government’s intention to use tax credits from medical aid members to fund the National Health Insurance (NHI).

Plans of the Department of Health and the National Treasury to raise an additional R34 billion for the NHI in this manner, are currently being openly discussed in the media by the department and its head, Dr Nicholas Crisp.

According to Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), these measures would deprive medical aid members of money that rightfully belongs to them, precisely because they do not burden the public healthcare system. Fund members can claim these credits back from the tax authorities each year.

He added that such announcements by the department are completely premature and unfair.

This comes after the department itself requested the court to suspend all legal proceedings regarding the constitutionality of the NHI, pending a Constitutional Court ruling in another case – the one concerning the validity of President Cyril Ramaphosa’s signing of the NHI Act.

“The government is asking for litigation against the NHI to be halted yet continues full steam ahead with its planning. You cannot scrap the medical aid tax credits before the NHI has been implemented, and you cannot implement the NHI before the court has ruled on the validity of the president’s decision to sign it,” said Du Buisson.

Solidarity is already consulting with its legal team about the possibility of separate legal action, or of including the issue of the credit abolition in an ongoing case against the state’s application for delay.

Du Buisson further stated that it is misleading for Dr Crisp to claim that the credits would amount to “double funding” once the NHI comes into effect.

“As long as there is no NHI, there is no double funding. Fund members receive these credits because they do not depend on the state. In fact, it is these members who are effectively paying twice – their tax money funds the planning of an unworkable and unaffordable NHI, while they are simultaneously forced to pay ever more for their medical aid contributions,” concluded Du Buisson.


Issued by Economic Researcher: Solidarity Research Institute (SRI) Spokesperson Theuns du Buisson