South Africa’s system for compensating victims of medical negligence is under severe pressure. Nowhere is that clearer than in the Eastern Cape. The province paid out more than R630m in medical negligence claims in the 2024/25 financial year. That is about 2% of its R30.1bn budget. The Eastern Cape governent didn’t plan for these payouts, and the result is predictable.…
Tag: Healthcare Funding
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GEMS Contribution Increase Sparks Union Backlash
Trade unions in the Public Service Co-ordinating Bargaining Council (PSCBC) have rejected the Government Employees Medical Scheme’s (GEMS) decision to raise member contributions in 2026. The scheme implemented a 9.8% increase from January 2026. It will then apply a revised 9.5% increase from 1 April 2026. Unions say the hikes are economically unjustifiable and socially regressive. They argue the increases…
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Value-Based Healthcare: A New Approach to Care
South Africa’s medical aid market is under fresh scrutiny for a pattern that clinicians and members know too well. This has prompted renewed discussion about value-based healthcare and its potential to improve patient outcomes and system sustainability. Schemes routinely fund high-cost, late-stage interventions. Yet they often resist paying for prevention and side-effect management that could avoid hospital admissions later. This…
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Medical Aid Tax Credit Cut Could Reshape SA’s Private Healthcare
South Africa’s healthcare funding model may be nearing a defining break point. The proposed withdrawal of medical aid tax credits, starting with high-income earners in 2026 and extending to all taxpayers by 2027, is framed as a revenue-raising measure to support the National Health Insurance (NHI). But it is also a structural shift in how healthcare is financed. The change…
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Busa Seeks an NHI Meeting with President Ramaphosa
Business Unity South Africa (Busa) has backed Finance Minister Enoch Godongwana’s call to cool tensions around National Health Insurance (NHI). In fact, Busa seeks an NHI Meeting to ensure there is structured engagement with the Presidency in the first quarter of 2026. The aim is to discuss proposals previously submitted to President Cyril Ramaphosa. Busa is the largest umbrella body…
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NHI Court Challenges: Litigants Reject Settlement Call
Negotiations are unlikely to resolve the NHI Act court challenges in the near future. Most organisations taking the National Health Insurance (NHI) Act to court have poured cold water on Finance Minister Enoch Godongwana’s suggestion that litigants should meet the government and “craft a settlement”. At the heart of the dispute is trust. Several groups argue that the government should…
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NHLS Cancer Test Outsourcing Hits R116m As Backlog Cleared
South Africa’s National Health Laboratory Service (NHLS) spent approximately R116 million between June and November 2025 to outsource cancer pathology tests to private providers. The emergency measure came in response to a national outcry over dangerous delays in public diagnostic services. NHLS Cancer Test Outsourcing Clears Critical Backlog The crisis intensified at the Charlotte Maxeke Johannesburg Academic Hospital (CMJAH), where…
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Medical Scheme Tax Credits: Treasury Resists Reallocation for NHI
A significant policy rift has emerged within the South African government over funding for the National Health Insurance (NHI). This debate concerns the future of medical scheme tax credits. President Cyril Ramaphosa signed the NHI Act into law in May 2024, yet Finance Minister Enoch Godongwana remains reluctant to implement the funding mechanisms required by the law. In a recent…
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Medical Scheme Tax Credits: Finance Minister Expresses Caution
Finance Minister Enoch Godongwana has sounded a strong note of caution. The Department of Health’s proposal to fund the controversial National Health Insurance (NHI) involves phasing out medical scheme tax credits. Speaking to journalists shortly before tabling the Medium-Term Budget Policy Statement (MTBPS) in Parliament, the Minister expressed deep concern over the potential impact on taxpayers. The Department of Health…
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TB Deaths Decline to 54,000, But Critical Treatment Gaps Remain
South Africa recorded approximately 54,000 deaths from tuberculosis (TB) in 2024, according to the latest World TB Report from the World Health Organisation (WHO). The figures confirm a slow but steady downward trend in TB deaths in recent years. This marks a significant improvement from two decades ago. During that time, the epidemic, fueled by the peak of the HIV…
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NHI Funding Plan “Unworkable and Unfeasible,” warns HFA
South Africa’s ambitious National Health Insurance (NHI) plan is facing intense scrutiny. The Health Funders Association (HFA) warns that “uncertainty and contradictions” plague the government’s NHI funding plan. They render it “unworkable and unfeasible”. The HFA has raised fundamental questions about the affordability and sequencing of the NHI. They highlight contradictory timelines presented by the Department of Health in court…
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Medical Tax Credits Under Investigation by Treasury
The National Treasury confirmed that it is actively investigating the “number of potential implications” of limiting or entirely removing medical tax credits. Proponents have long proposed this move as a key mechanism for raising funds for the government’s sweeping National Health Insurance (NHI) scheme. In a brief statement, the Treasury acknowledged it “had engagements with the Health Department” on the…