A study by the economic research consultancy, Econex revealed that the national health insurance scheme (NHIS) suggested by the Government might cost up to R216bn.

Nicola Theron, Director of Econex, offered the results at the Hospital Association of SA’s (HASA) annual meeting at Sun City.

Theron said, “Econex’s preferred scenario for the envisaged cost of funding an NHIS ultimately showed a total cost of R216bn”.

She said that even if the most reasonable model were to be applied, the number would still come to a sum of R197bn; a figure near to SA’s full personal income tax payments.

Theron said that SA would be unable to pay for this. She said that the NHIS endorsed worldwide coverage at no charge with a free choice of supplier.

She also said that the demand on the medical system would deeply overshadow the available resources.

She remarked, “If everyone is covered and there is no income constraint, the healthcare behavior of the entire population would mimic that of the richest income group”.

Tony Twine, Senior Economist and Director of Econometrix, recommended that even a further 5% of gross domestic product added to present Government health care expenditure would make an NHIS very expensive.