South Africa’s National Health Insurance (NHI) Bill

South Africa’s National Health Insurance (NHI) Bill

16 June 2023

Key Indicators

Index / Fund / Rate Start of Year Last week This Week % change YTD
Lunar BCI WW Flexible Fund 141.43 170.54 171.81 21.48%
JSE ALSI 73 049 77 126 78 532 7.51%
NASDAQ Composite 10 467 13 259 13 690 30.79%
S&P 500 3 840 4 299 4 410 14.38%
Prime Lending Rate 10,50% 11.75% 11.75% 11.90%
USD/ZAR 16,98 18.72 18.17 7.01%
EUR/ZAR 18,44 20.17 19.86 7.70%
Brent Crude ($’barrel) 85,95 74.98 75.62 -12.02%

Source: Iress

Weekly Stocktake with Danyaal

South Africa’s National Health Insurance (NHI) Bill

What does the NHI propose?

The National Health Insurance (NHI) Bill was recently passed by Parliament, with the aim of providing universal health insurance to all individuals in South Africa. The bill proposes pooling the resources of all citizens in the country to achieve this goal. However, it should be noted that the Bill still requires approval from the National Council of Provinces and subsequent signing by the President before it can be enacted. According to the government, the bill intends to ensure that every citizen has access to high-quality healthcare, regardless of their income or health condition. Under the proposed system, the government will take charge of purchasing all necessary health services for the population. This includes determining the types of services available, the placement of health facilities, and the allocation of health professionals.


The specific details of the funding structure for the NHI initiative are currently uncertain. However, it is suggested that the funding will rely on the existing tax plan, with additional taxes or rates imposed on those who have the financial capacity to afford them. It is important to note that South Africa currently faces one of the highest unemployment rates globally, resulting in a relatively small tax base. The implementation of the bill in its entirety could potentially place a substantial burden on taxpayers, further straining the already challenging economic landscape.

What does this mean for SA Health Insurers?

Health insurers in South Africa, such as Discovery, Momentum and many others, currently serve around 9 million individuals. However, under the NHI bill, these insurance schemes will only be allowed to provide coverage for procedures that are not included in the bill. This could potentially render them obsolete or significantly reduce their scope of services. The complete implementation of the NHI bill is estimated to take approximately 10 to 15 years if everything goes according to plan. Nevertheless, it is important to note that there is a possibility of legal challenges being raised against the bill, which could potentially impact its timeline and implementation.

The NHI bill raises numerous unanswered questions regarding coverage, funding, impact on current medical aid schemes, implementation timeline, legal validity, and unintended consequences. Only time will reveal the true outcomes and effects of the bill as it progresses and more details emerge.

Connect with us on social media:


Lunar Capital on Eastwave Radio

Every Tuesday, at 07h45, Sabir chats with Nazia from Eastwave Radio (92.2 fm, live stream on on investing and the markets.

Click here to access your account to view statements, obtain tax certificates, add, or make changes to your investments.

Our email address is: [email protected]

Read our full Disclosure statement:
Our Privacy Notice:
The Lunar BCI Worldwide Flexible Fund Fact Sheet  can be read here.
This roundup is prepared for the clients of Lunar Capital (Pty) Ltd. This roundup does not constitute financial advice and is generated for information purposes only.
Share article

Latest Posts

Disney – Where is the Magic?
Disney – Where’s the Magic?
How did Disney lose its sparkle, and what are they doing to get it back.
Amazon – Not your everyday Bookseller
Amazon – Not your everyday Bookseller
What characteristics have made Amazon the everything store
Microsoft: On Cloud Nine
Microsoft: On Cloud Nine
ind out how AI has been benefitting Microsoft

Lunar Capital
on Eastwave Radio

Every Wednesday, at 07h45, Sabir chats with Nazia from Eastwave Radio (92.2 fm, live stream on on investing and the markets.

Scroll to Top