Funding NHI: A spoonful of sugar

Funding NHI: A spoonful of sugar

The South African Government released its long anticipated Policy Paper on National Health Insurance ("NHI") funding on 11 August 2011. The Policy Paper sets out a compelling vision to tackle the country’s healthcare challenges of access to care and quality service delivery. But is the NHI affordable for South Africa?

A spoonful of sugar

KPMG’s Healthcare team researched whether the economic benefit of investing in healthcare outweighs the cost of increased taxes needed to fund NHI over the 14-year rollout period (2012 to 2025).

Findings revealed that implementing the NHI could improve the health of the population, which, in turn, can increase productivity, expand the gross domestic product ("GDP") and make the country more prosperous – even after taking into account the cost of funding it.

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