EXPLAINER: What you need to know about NHI

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The National Health Insurance Act has been signed into law. But what is it and how will it work? This is what you need to know about NHI.

The first step will be to create the NHI fund, which will operate like a business, to buy services for all South Africans from both the public and private sector. This fund could take at least a year to establish.The NHI Act proposes increased tax collection to be determined by National Treasury. This could be in the form of a payroll tax - much like the UIF - and an increase in personal taxes.

Once the NHI covers a benefit, medical aid schemes may not cover the same service. In time, it will mean the benefits they cover will be dramatically reduced, their membership will dwindle, and they may not be able to survive to only offer additional benefits not covered by the NHI.Yes you will - but you will have to pay for their services in cash, and you won’t be able to use your medical aim scheme to pay for a service already provided by the NHI.

Source: Healthcare Press (healthcarepress.net)

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