“Trade, Industry & Competition Minister Parks Tau and Health Minister Aaron Motsoaledi are leading changes that could greatly affect medical schemes, private healthcare providers, and consumers.” – Editorial Business Day (21 Feb 2025}
“The government’s latest moves significantly shift SA’s private healthcare landscape. However, without holistic implementation of the HMI’s recommendations, these reforms risk being ineffective or counterproductive.”
Minister Tau has proposed exempting medical schemes and private healthcare providers from the restrictions of the Competition Act regarding collective bargaining. This would enable industry participants to partake in multilateral tariff negotiations under the oversight of the Department of Health.
Minister Motsoaledi has initiated public consultations regarding the Council for Medical Schemes’ (CMS) report on Low-Cost Benefit Options (LCBOs). The report recommends phasing out LCBOs and shifting health insurance products into CMS regulation. Motsoaledi insists that LCBOs are unnecessary, as the public healthcare system provides the same services at no charge or minimal cost.
Both Ministers assert that their policies are in line with the HMI’s reform blueprint; however, critics contend that essential components are being selectively chosen.
The HMI called for a holistic approach, which includes:
• A standardised basic benefits package across all medical schemes;
• Transparent tariff negotiations;
• Quality monitoring to manage healthcare demand; and
• Independent regulatory bodies to oversee implementation
“The Ministers’ selective implementation could undermine the HMI’s original vision of a fairer, more efficient private healthcare system.”