South Africa The Health Bill- A blessing or a Burden
As South Africa’s health bill released on the 26th of July 2019, the South African government looks to extend its health support to people of all ages and income groups.
However, it seems to have sparked an entirely new debate, rather than making the mass audience happy.
The debate seems to incite fears among the general population about the burden of such a bill.
Why? Although the bill seems to have succeeded in extending the support to a greater proportion of the population, it has generated concerns about who will finance the bill and how will it be financed.
The answer to the question can be found in the memorandum for the same bill explains, it will be funded through a number of different sources. Although the treasury is still under discussion as to how the bill will be financed, a number of the current information states that the funding will come from 4 main sources.
These four sources include:
The existing tax revenue: This tax revenue currently stands at R150 billion per year that can be used for National Health Insurance.
Using funds for Medical Schemes: It involves divesting funds invested in various schemes and using them for the new National Health Insurance Plan.
Payroll taxes: The bill also explains that the taxes on payroll will also be placed. However, the bill does state that this tax will be rather small.
Personal Surcharge: Tax will also be charged on an individual’s personal income. However, the bill does not give any particulars about the surcharge.
All this has the general public, worrying about how much the effect of this new policy will be on their current and long-term saving plans.