The 2013 national budget to be tabled in February could provide an opportunity for Government to address the uncertainty surrounding funding of the proposed National Health Insurance plan, especially as expectations had been raised that about R225 billion will be required for the scheme by 2025, says Deloitte.
“During the last three years health expenditure has grown, increasing from R77.3 billion in 2008/09 to R113.2 billion in 2011/12. It is expected that this figure will grow, reaching R140 billion over the next three years. However, the 2012 budget allocation for healthcare was R121 billion, marginally below estimates of R121.5 billion, demonstrating what seems to be an under-provision for health,” says Ashleigh Theophanides, Director and Healthcare Actuary at Deloitte.
“This present under-provision should be seen in the context of Green Paper estimates that the NHI will cost R255 billion by 2025. This appears to be a considerable increase over current healthcare spends.”
“However, real term considerations indicate that, based on current trends, healthcare spend would have reached about R180 billion by 2025. This raises the expectation that there will be a need to generate additional income to cover the difference between spending projections and what Government expects it will realistically require.”
“Government, with the upcoming Budget, will therefore have an opportunity to provide clarity on the funding issues. Of major interest will be any additional discussions on how health budget allocations will be affected by the extension of the implementation period for the NHI,” she said.
Download the full article . . . . Uncertainty regarding funding of National Health Insurance
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