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BusinessTech reports that according to Department of Health (DOH) Minister Aaron Motsoaledi, the removal of medical aid tax credits is written into the National Health Insurance (NHI) laws approved by Parliament.
Responding to parliamentary questions around the NHI and the plans to remove medical aid tax credits for about a third of medical scheme members, Motsoaledi shrugged off concerns. In October, the DOH revealed that it was in talks with the National Treasury to start phasing out the medical aid rebate and funnel the ‘savings’ towards the NHI. According to the DOH, R33 billion can be directed to the NHI through the cutting of the tax credit, which it says serves those who are “well off” at the expense of the poor. But, the Board of Healthcare Funders (BHF) warned that removing medical aid tax credits would harm low-earning medical aid members in particular, making membership unaffordable for them.
Motsoaledi was asked by DA MP Dr Karl Le Roux whether the department performed its own assessment of the situation. But, the minister’s response missed the crux of the question, which was whether or not the DOH had conducted any study or assessment on the removal of medical aid tax credits and the resultant impact on medical aid scheme members. The minister also neglected to draw focus to the highly controversial and contested Section 33 of the NHI Act, which would prevents medical aids from covering the same services that the NHI would cover.
- Read the full original of the report in the above regard at BusinessTech
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