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National Health Insurance (NHI) Bill signed into law
- 20 May 2024
- Regulatory Compliance and Legislation
- South African Accounting Academy
The National Health Insurance Act has therefore been gazette, but is not yet in force.
It has been predicted that every South African will be able to receive free quality healthcare as soon as 2030.
The NHI Act provides for the establishment of a national health insurance fund in which ‘allocated resources’ will be pooled for the purpose of procuring “health care services, medicines, health goods and health-related products from certified and accredited health care service providers, health establishments and suppliers”.
Subject to section 57 (transitional arrangements) “different dates may be fixed in respect of the coming into effect of (the Act’s) different provisions.”
The NHI system will be implemented over 2 phases, with the National Health Insurance being gradually phased:
- Phase 1 commenced in 2023 and continues for a period of 3 years until 2026.
- This phase mainly focuses on the establishment of the institution, as well as the expedition and strengthening of the healthcare platform and other basic instruments.
- Phase 2 will commence in 2026 and will run for a period of another 3 years until 2028.
- This phase will be more intensive with regard to the contracting of healthcare services and implementation of programmes.
Work is apparently already under way on regulations, which will be released in draft form for public comment in the future.
Click here to download the access the government article:
https://www.sanews.gov.za/south-africa/president-ramaphosa-signs-nhi-bill-law
Relevance to Auditors, Independent Reviewers & Accountants:
- The NHI Act is yet another piece of legislation that your clients (in the relevant medical field) must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer and accountant, you need to consider the implications of new Acts, and be aware of latest developments and newsworthy announcements.
- As an individual, the NHI Act will definitely impact on how you receive healthcare in the future.
Relevance to Your clients:
- Where appropriate, an entity (in the relevant medical field) has a duty to comply with the NHI Act, otherwise they could be held liable.
- As legislation, regulations and others law are continuously changing and evolving, it is of utmost importance for companies and individuals to continue to meet their legal obligations.
- As an individual, the NHI Act will definitely impact on how your clients receive healthcare in the future.