Extract from Speech by DA Gauteng Health Spokesman Jack Bloom MPL
at Johannesburg Rotary Club lunch briefing at the Johannesburg Country Club on November 23 2010:
NHI WILL SQUEEZE OUT MEDICAL AIDS
Private medical aids will be squeezed out if the ANC's proposed National Health Insurance is implemented as planned.
This is because they will become less affordable as present tax deductions worth about R10 billion are phased out and higher income earners pay three to four percent of salary to a government-run NHI fund.
It will be a form of double taxation as taxpayers who opt for private care will get no benefit from what they pay for the public health system.
This is inherently unfair. In the German health system, for instance, higher income earners who opt out of the public health system are not required to pay the 7% payroll tax as well.