Each year brings about new proposed legislations that could possibly affect the quality of our lifestyles, especially for retirement. The National Health Insurance (NHI) Bill and Medical Schemes Amendment Bill are new, on-going proposed legislations that will revolutionise healthcare in South Africa. Along with security needs, retirees are also concerned about the level of healthcare available to them. With this new law coming into effect in years to come, we take a look at the implications it could have on you.
Healthcare is a necessity
There is no denying that retirees need to consider the cost of healthcare, especially when in retirement. “Medical cover is likely to remain a significant part of a household’s expenses and affect the future cash flow of retirement savings,” shares Andre Lindeque, GTC Financial Services consultant in a Fin24 interview. It is estimated that medical premiums and care rises on average 3 – 4% more than the consumer price index.
What is the NHI
The National Health Insurance (NHI) is a new financing system that will provide universal health coverage for all South Africans. The NHI ensures healthcare is available despite socio-economic backgrounds or financial hardships. In other words, it is the objective to ensure every South African has the right to access comprehensive healthcare services.
Quality affordable healthcare
Only 10% of the South African population can afford private healthcare, this is according to the World Health Organisation for Economic Cooperation and Development. The proposed NHI Bill is set to reduce the cost of healthcare for all South Africans and make good quality healthcare accessible to all.
While these changes will come about slowly, it is still necessary to ensure you have accounted for your healthcare as you transition into retirement. While you may be fit and healthy now, you also need to consider those unexpected situations and be aware of the need to maintain your health holistically.
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