NHI roll-out cost increased by additional R33bn a year

Estimate is an indicative cost, not budget commitment – Treasury.
Image: Shutterstock

Rolling out the National Health Insurance (NHI) will require an additional R33 billion annually from 2025/26, according to the revised model estimates.

However, the Medium-Term Budget Policy Statement (MTBPS) states that these amounts are not budget commitments but indicative cost estimates.

Read: The Medium-Term Budget Policy Statement 2019

Mini budget in a nutshell

The MTBPS states NHI costs were originally projected to increase public health spending from about 4% to 6% of GDP over 15 years but, given the macroeconomic and fiscal outlook, the estimates to roll out NHI that were published in the NHI Green Paper in 2011 and White Paper in 2017 are no longer affordable.

National Treasury has assisted the Department of Health to develop an actuarial model with updated fiscal costs and limited policy reforms to strengthen the current healthcare system.

Read: The good and bad about MTBPS that Moody’s will watch

National Treasury downgrades 2019 growth forecast

The MTBPS adds that, following the introduction of the NHI Bill in Parliament earlier this year, the Department of Health reprioritised funds within its 2019/20 budget to establish an NHI Office. Over the medium term, this office will receive increasing allocations for its operational costs.

The NHI policy aims to provide healthcare more equitably in South Africa.



Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.


Ek het so pas ‘n aar gebars……. 🙂 moet seker maar net lag.

Daar is ook die gesegde – “‘n ystervark gebaar” – sonder die lag, maar ek hoor jou.

Reported you. Just confirms the level of hatred out there for the Afrikaans language. In case you did not know it, language is a basic human right according to the UN.

Note I do not disagree with you that comments should probably be kept in English on an English language website, but I object to the hateful way in which you expressed this sentiment.


What is a few Bieljon. Today’s talk was all in Trieljons.

Thats the new buzzword. TRIELJONS.

Treasury assists the department of health.

Is that called the blind leading the blind.

The more TRILJOENS it costs the less likely it will happen.

the NHI have not even been implemented yet and they already need more and more money…so yes if one read between the lines its is already a failure.

You’re being unkind to the blind. Most blind folk are way ahead of this lot. I would propose to call this lot “all challenged by the Dunning-Kruger Effect” (is there an adjective to describe such people?), leading each other around in circles to no achievable destination.

The NHI will become another black hole where anything put into it just disappears into the system unless the current public health system is corrected and managed to become a proper health service provider.

What about the cost of health professionals emigrating in droves?

That’s probably the only thing keeping the GDP growth at it’s paltry 0,5%. Taxing those that are leaving is scoring the nation big… for now.

I recently had a hospital stay that cost R369 000. I was back home in 10 days. My medical aid covered practically all of it. Would NHI have worked that quickly and saved me that much money? ROFL.

Let alone your life? No. You will be two years on the waiting list behind all the tik addicts suffering from knife wounds sustained while standing in line for their SASSA grants.

That would be funny if it wasn’t so serious.
@carwriter – I hope you’re all good now.

NHI is going to be like watching a car accident in slow motion.

I support the NHI. It will bring a major, positive change to our country. However, I am worried that once again a grand and important plan will be ruined by poor planning and pure theft of resources. The track record so far is not encouraging. I hope South Africa does not become known one day as the country that tried to do great things.

So you support something that will inevitably be ruined based on the track record that you acknowledge yourself? Time to grow up.

SA is already known as a country with failed potential, missed opportunities and own goals.

Here we go again with another Medupi/Kusile project designed to line the pockets of ANC framily and friends.


A good indicator of Governments future behavior is of course past behavior.. Show me one successfully run (solvent) SOE and i shall show you a prudent NHI..If they (Government) have to continue bailing out SOE’s due to corruption, where on earth is the money going to come for another burden? Incidentally the tax payer responsible for funding half the state coffers through income tax are leaving the country in their droves resulting in a lack of funds and an IMF bailout who will put an end to the gravy train. I would be for an NHI providing each and every SOE was solvent “If there’s a single lesson that life teaches us, it’s that wishing doesn’t make it so”

End of comments.




How much do you earn per year?
How old are you?

Total tax:
Income after tax:

Total tax:
Income after tax:
Moneyweb is a financial, investment news provider and not a tax- or financial advice authority. Please contact Sars or a registered tax practitioner for any tax-related queries.


  CPIThe Consumer Price Index (CPI) measures monthly changes in prices for a range of consumer products Jul 2022 7.40%
  CPI ex OERThe Consumer Price Index excluding Owners’ Equivalent Rent (CPI ex OER) measures monthly changes in prices for a range of consumer products excluding Owners’ equivalent rent that measures changes in the cost of owner-occupied housing Jul 2022 8.10%
  RepoThe rate at which the Reserve Bank lends money to the country’s commercial banks and set by the Reserve Bank’s Monetary Policy Committee. Aug 2022 5.50%
  Prime lendingThe Prime Lending Rate is the rate of interest that commercial banks will charge their clients when issuing a loan (home loan or vehicle finance) Aug 2022 9.00%

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.

Follow us:

Search Articles:
Click a Company: