POLITICS

Healthcare costs must be regulated - SAMWUMED

Union medical scheme calls for exemption of healthcare from Competition Act

"Healthcare costs must be regulated now to ensure equal access to all"- SAMWUMED

The South African constitution lists the right to health care together with food, water and security. Access to these needs is a right that every South African should have undeniable access to. The constitution further states that government must take legislative measures to achieve the progressive realisation of these needs. Perhaps enforcing the National Health Insurance (NHI) can be regarded as a governmental initiative to create access to quality healthcare services for every South African. After all, Health Minister, Aaron Motsoaledi said the project aims at strengthening the country's overall health system.

While the government is implementing noticeable reforms such as the NHI in the healthcare sector, most public healthcare facilities are still under-resourced and are unable to meet the demands of the population.

Says Mthandeki Nhlapho, General Secretary of the South African Municipal Workers Union (SAMWU): "It's going to be a while before the NHI is fully implemented and until then, millions of workers are faced with increasingly unaffordable medical aid costs, a result of unregulated private healthcare providers' costs on the supply side."

Consequently, low-income earners still have to go through challenges such as long public hospital queues, shortage in medication and lack of required facilities. The private healthcare sector, on the other hand, is fast growing and caters to middle and higher income earners whose majority belongs to medical aid schemes. Even for this class, quality healthcare seems to come at a challenge - private healthcare costs are currently at its highest levels in the history of South Africa. 

Moreover, according to the Competitions Act, medical schemes can't collectively negotiate reimbursement tariffs with providers, which means private doctors and hospitals can charge at their own rates. So a majority of patients still have to pay out of pocket towards their doctor and hospital bills even if they have medical aid cover. In playing its role on remedying the situation, the South African Municipal Workers Union National Medical Scheme (SAMWUMED), demands that healthcare must be exempted from the Competitions Act, removed from the market and take up its legitimate place as a social need.

"The government's plan to use the National Health Insurance to eventually ensure that all South Africans can access quality healthcare regardless of income is a very good one. However, actions to alleviate the currently staggering and unregulated healthcare costs must be undertaken," says SAMWUMED's Principal Officer, Neil Nair.

Furthermore, SAMWUMED calls for the regulation of healthcare costs and strongly suggests the National Health Reference Price List (NHRPL) to be re-instated immediately as an interim relief. Designed by the Council for Medical Scheme in response to outcries by medical schemes, the list was compiled by gathering submissions from all disciplines of health service with suggestions regarding the actual cost of running a practice.  "The NHRPL can act as guideline for medical schemes to calculate tariff structures and design benefit structures to minimise additional payments from members," says Nair.

Statement issued by Nelisa Ngqulana, SAMWUMED communications officer, April 26 2012

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