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Mediclinic News : Medical scheme contribution tax credits capped to raise funds for NHI

Title

Medical scheme contribution tax credits capped to raise funds for NHI

Date

2018-02-26

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News Description

NEW AGE The country cannot afford the National Health Insurance NHI without much faster economic growth rates. This was said by the head of policy research at the Institute for Race Relations, Anthea Jeffery. Jeffery said the government should not be taking any further steps to implement the NHI when there are far better means available to achieve universal health coverage. Jeffery's statement comes after Finance Minister Malusi Gigaba's maiden budget speech in which he announced that the Department of Health will receive R205bn. The amount is expected to grow to R240bn by the 202021 financial year. Gigaba announced that R4.2bn has been allocated to the NHI with below inflation medical tax credits used to fund the NHI. He said medical tax credits will increase from R303 to R310 per month for the two first beneficiaries and thereafter from R204 to R209 for the remaining dependants. "Reducing the medical tax credit will make it harder for many people to maintain their medical scheme membership and is likely to leave them dependent on the failing public healthcare system," Jeffery said. "Instead of putting this further pressure on already struggling households, the government's key priority should be to ensure that its extensive tax revenues are far better spent, both in the healthcare sector and all other spheres." Gigaba's announcement that tax credits will be used to fund the NHI comes after Health Minister Aaron Motsoaledi last year during a media briefing proposed that the government withdraw its tax incentive to medical aid schemes, labeling the R2Obn tax credits "unfair". Motsoaledi argued that the tax credits should rather be used to establish the NHI fund.
Created at 2018/03/06 05:11 PM by Mediclinic
Last modified at 2018/03/06 05:11 PM by Mediclinic