Free Market Foundation condemns plans for expropriation of medical aids
21 May 2021
Johannesburg – The Free Market Foundation (FMF) opposes, in the strongest possible terms, recent calls by the Health Professions Council of South Africa that the proposed National Health Insurance (NHI) should be the only funding mechanism for health in South Africa and that the financial reserves currently held in medical schemes should in effect be expropriated for use within the NHI.
Reserves of medical schemes belong to their members, and taking possession of these would be unlawful seizure of private property. Is it the case that the proposed amendment of section 25 of the Constitution, to allow for expropriation without compensation, will apply not just to land but also to other property, such as medical scheme reserves.
FMF Deputy Director Chris Hattingh said, “The NHI will not deliver improved health outcomes for citizens; it will instead subject all healthcare services to the inefficient, increasingly centralised, stilted bureaucracy and corruption prevalent in the public sector, drive medical professionals out of the country, and stifle medical technological advances and innovation.”
The FMF recommends that, instead of nationalising the management of all healthcare in the hands of the state – as the NHI would do – the state should focus on improving the quality of public healthcare services, which the majority of citizens rely upon, and the recommendations of the Health Market Inquiry should be revisited and implemented for the private sector.