Cape Town - A National Health Insurance (NHI) system would address the economic imbalances in South Africa and ensure all citizens have access to decent health-care, says Health Minister Aaron Motsoaledi.
"It is a system of universal healthcare coverage where every citizen is covered by healthcare insurance, rich or poor, employed or unemployed, young or old, sick or very healthy, black, white, yellow or people of whatever persuasion," said the minister.
Delivering his Budget Vote in Parliament on Tuesday afternoon, he said the department was concerned that the current health system excluded the poor and vulnerable populations.
The present system of healthcare financing "could no longer be allowed to go on, because it was simply unsustainable".
In the 2007/08 budget, 8.5 percent of the Gross Domestic Product was spent on health. Five percent catered for 7 million people in private health care and the remaining 3.5 percent catered for 41 million people in state health.
He said nowhere in the civilised world would one find a similar state of affairs. "The present model of healthcare financing is just outright primitive, and we are going to abandon it."
Having people pay for healthcare out of their pocket was not ideal, said the minister.
There has been much criticism of the NHI since it was announced, including that it would overburden the rich and the economy would not cope.
"It is this part, about covering the poor and the unemployed, that is bringing discomfort and unprecedented anger in the minds of the enemies of NHI," said Mr Motsoaledi, who explained that the idea behind the NHI was to create fairness with regards to healthcare.
He said he would be presenting an official document, detailing how the NHI would work soon.
A Task Team on NHI was set up, consisting of experts from inside and outside government, to prepare the necessary background materials that will form the basis of a plan for NHI.
The team is expected to find a funding and delivery model that seeks to eliminate out-of-pocket payments and co-payments, redistribute human and material resources in a highly inequitable system, improve the quality of health services, enhance access to essential services and ultimately improve health outcomes for the majority of the people.
The NHI was based on the premise that the public health system has suffered under-funding which has resulted in deteriorated state facilities; the exodus of skilled personnel and the private health system becoming less affordable not catering for all the needs of its members.
