Following the announcement of the National Budget by Finance Minister Pravin Gordhan yesterday, Karin Muller, head of middle market solutions for Sanlam Personal Finance, unpacks the top Budget implications for consumers.
Efforts to improve the quality of, and access to, healthcare for South Africans:
- R360,6 billion will be spent on improving access to quality healthcare over the next three years. This includes the introduction of the National Health Insurance (NHI).
- To get the NHI off the ground, R1,2 billion will be spent on setting up family health teams made up of nurses, doctors and community health workers who will look after families in facilities and communities, and improve the quality of care in hospitals.
- In addition, R2,5 billion will be spent on increased HIV counselling and testing and extending the threshold for people to receive antiretroviral treatment.
- Maternal and child health services will be improved, with R1,4 billion given to training 400 nurses and midwives, improving health services at schools, and improving services at mother and child wards at district hospitals.
- R2,7 billion will be spent on improving health facilities and medical equipment available across the country.
- Various funding methods will be investigated. A possible increase in the VAT rate and a surcharge on individual taxable income will be considered and investigated this year as part of the options to assist with funding requirements to implement a national health insurance system.
What does this mean for the consumer?
Muller says that there is a clear increase in commitment from Government to improve healthcare standards for all South Africans; particularly poorer sections of the population. But while changes will be phased in over a number of years, what is clear - and was mentioned in last year’s budget too - is that Government currently does not have sufficient money to implement the entire NHI scheme. This means that it will eventually affect consumers through some form of tax. The specifics are still being investigated, but some of the alternatives are an increase in VAT, removal of medical subsidy and a payroll tax. However, as they are only being investigated, they will not implemented this year.
Moreover, since implementation of the NHI scheme will be phased in, consumers will not immediately benefit from the NHI scheme - although some will hopefully begin to experience improved servicing and benefits. If you currently have medical aid schemes to provide for your medical needs you will need to keep on providing for your medical aid needs through the payment of a monthly premium.
Healthcare budget: what does this mean for consumers?
Recent Articles
Featured 5 common money-saving mistakes and how to avoid them
If you diligently dedicate a portion of your income towards an appropriate savings vehicle, over time this will act as your financial safety net. So why then do so many people struggle to save?
Why you need to adapt your attitude towards money as you age
As you move through life, you will encounter different phases and interests, and your perspective will change. Where you choose to spend your money will change as a result. We have a look at the impact on your finances.
How to pay your bills on time and save your credit score
The most crucial factor in ensuring a good credit score is meeting your monthly payments – in full, and on time. But how can you guarantee you don’t miss any payments?
What are your financial responsibilities in the funeral of your employee’s family?
When your in-home employee loses a loved one, your heart will go out to them, and you may feel compelled to contribute financially towards the costs of the funeral. However, this comes with a lot of uncertainty. How much should you contribute?
Deals
Book 3 nights and get the 4th one free at Sun City
Price: Available on request
When: Until 30 June 2021
Where: Johannesburg
Bakwena Spa Mother’s Day Special
Price: From R849
When: Until 09 May 2021
Where: Western Cape and Gauteng
Spur Monday Special
Price: R60
When: Mondays
Where: Nationwide