South Africa’s two biggest industry bodies for medical schemes are urging Finance Minister Enoch Godongwana to keep medical tax credits in place and increase their value in the upcoming Budget. They argue the credits are critical to keep private cover affordable for working families, especially as costs rise. The call comes as the health department pushes to phase out medical…
Tag: Treasury
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Medical Aid Tax Credits and Public Health Jobs
South Africa’s public health crisis is no longer only about disease burden. It is also about staffing, budgets and political choices. Furthermore, a new argument gaining traction is that austerity is shrinking frontline services. At the same time, the tax system still cushions households that can afford private cover, especially through benefits like Medical Aid Tax Credits. The government has…
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Medical Negligence Compensation Reform Impacts on Budgets
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.…
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NHI Truce Talks: Godongwana Pushes Settlement On NHI
South Africa’s National Health Insurance (NHI) debate may finally be shifting from courtroom combat to negotiation. Finance Minister Enoch Godongwana has called for the parties litigating against the NHI Act to declare a truce and work towards a settlement. The message is simple. Years of fighting over the policy have drained attention from the daily job of fixing a strained…
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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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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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BHF Seeks Clarity for Medical Tax Credit Changes
The Board of Healthcare Funders (BHF) has written to Treasury director-general Duncan Pieterse, demanding “urgent clarity” on the government’s plans to phase out medical scheme tax credits. These credits serve as a financing mechanism for the National Health Insurance (NHI), a controversial initiative. In light of this, BHF seeks clarity on how these changes will impact the healthcare funding landscape.…
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No relief in health budget for US cuts to grants for HIV/AIDS
The Treasury stated on Wednesday that no relief is in the budget to mitigate the impact of US President Donald Trump’s sudden termination of grants to HIV/AIDS organisations in South Africa. The Health Department has yet to finalise its analysis of the required resources. Trump’s administration has thrown organisations reliant on US foreign aid into turmoil worldwide, first with a…