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NATIONAL HEALTH INSURANCE

Avalanche of litigation likely to follow Wednesday’s signing of contentious NHI Bill

Various organisations, including trade union Solidarity and the DA, are gearing up for a "major court battle" against the controversial National Health Insurance (NHI) Bill, with legal challenges expected to be based on a range of grounds including concerns over public consultation, the limitation of medical aid coverage, and potential infringements on constitutional rights.
Avalanche of litigation likely to follow Wednesday’s signing of contentious NHI Bill A NHI pilot district vehicle parked at Alan Blyth Hospital in Ladismith on 15 February 2023. (Photo: Shelley Christians)

The trade union Solidarity. The DA. The Health Funders Association. The South African Medical Association. The Board of Healthcare Funders. The South African Health Professionals Collaboration.

These are just some of the bodies that have indicated they are prepared to approach the courts to challenge the controversial National Health Insurance (NHI) Bill – before it has even been signed into law.

DA leader John Steenhuisen said on Tuesday that the party would take the legislation to court as soon as it had been signed, with the DA’s legal team having been briefed “months ago”.

The Board of Healthcare Funders – one of the major industry bodies for medical aid schemes – was equally resolute, announcing that it would “immediately institute legal proceedings”.

The South African Medical Association stated that it would “fight for the protection of our healthcare services in [the] relevant courts”, and that “our legal team is preparing to launch this challenge”.

Even before President Cyril Ramaphosa made his surprise announcement on Monday that he would be signing the bill into law on Wednesday, trade union Solidarity had indicated that it was gearing up for a “major court battle”.

Other organisations were slightly more circumspect but hinted that they were not ruling out legal action.

Business Unity SA said it would “consider [its] options” based on the details of Ramaphosa’s Wednesday announcement, and that this might include “appropriate legal interventions”.

The Health Funders Association – another industry body for medical aid schemes – said on Tuesday that it is “well prepared to defend the rights of medical scheme members and all South Africans to choose privately funded healthcare”.  

A spokesperson for the South African Health Professionals Collaboration – a national body representing more than 25,000 public and private sector healthcare workers – said: “We have no doubt that the NHI Bill will be challenged in the courts, and we are currently exploring all our options in this regard.”

Range of legal arguments likely to be made

The signing of the NHI Bill looks set to be a gigantic payday for the government’s lawyers – though it is as yet unclear if some of the aggrieved parties may join forces to contest the legislation together or as friends of the court.

The bill is likely to be attacked on multiple legal grounds.

Business Leadership SA CEO Busisiwe Mavuso pointed out on Tuesday that the Constitutional Court had previously struck down legislation because of the state’s failure to adequately take into account the results of public consultation, which she suggested might be the case here.

Mavuso said: “Public consultation cannot just be a matter of procedure, but must include proper consideration of the input received, as spelt out in the Promotion of Administrative Justice Act. It is hard to believe that there has been proper consideration when draft legislation is finalised without change after a comment period.”

Read more in Daily Maverick: Understanding the National Health Insurance Bill – Six articles to read

The Board of Healthcare Funders (BHF) pointed specifically to section 33 of the legislation as the aspect it would legally challenge, describing it as “unconstitutional and unlawful”.

Section 33 stipulates that no medical aid will be able to cover any health service offered by the NHI.

“We want section 33 removed as it reduces the role of medical schemes that are a national asset,” BHF stated.

The law firm Werksmans Attorneys’ head of healthcare, Neil Kirby, wrote in November 2023 that the NHI legislation in its current form might be open to constitutional challenges on the basis of the right to freedom of association if it attempts to force people to register as NHI users.

“Equally, the state cannot enact legislation that unfairly or unreasonably limits a person’s rights to access healthcare services where there is a viable and available alternative to do so,” Kirby wrote.

“Such a situation would, no doubt, bring the bill and eventual NHI scheme into a collision course with the Constitution.”

Social justice organisations have also raised concerns that the rights of asylum seekers and foreign nationals may be infringed by being granted access to only limited healthcare services in terms of the legislation, which is likely to be another avenue for legal confrontation.

In general, it has been suggested overall that the NHI would create barriers to accessing healthcare – for instance, in terms of the documentation required for registration – which would be unconstitutional too.

Former health department legal adviser, Dr Debbie Pearmain, was quoted last year as noting that the state’s law adviser had said the bill would likely pass constitutional muster.

“But bear in mind that the state law adviser has said several other pieces of legislation are constitutional and then the courts have found them not to be,” Pearmain said. DM

Comments (10)

JAJ Stewart May 15, 2024, 11:12 AM

The ANC must know this. Clearly pre-election populist politricking.

Jesue.fashions@gmail.com May 15, 2024, 11:15 AM

We are all afraid that NHI will fail because of the level of corruption & the current situation of public care. On the other hand, we need to realize that only 16 % of the us have access to private health care whilst the balance of the population is dying without proper health care. Some, even have the privilege to travel abroad to get medical attention. Those that have a problem with NHI are the one that will lose the most as many of them are abusing the private medical aids & patients. Being senior citizen, we experience many such problems in the private system with doctors overservicing & overcharging. One has damaged my left eye by preforming laser treatment that was not required. Three other doctors have since found that I do not have diabetic retinopathy. I am now told to get my attorneys to contact them. Instead of complaining, we should all think of assisting by developing a system that will benefit all. It is obvious that the current setup is benefiting the rich & big business whilst the poor are dying & no one cares. Let's be human & care for the poor also.

Esterl@unisa.ac.za May 16, 2024, 08:43 AM

I am already paying a BIG chunk of tax to look after the poor! And the poor are doing their utmost to swell their ranks! Through unsustainable procreationa and continued support of the communist ANC and their business unfriendly policies. So NO, I'm paying enough for the poor!

karin@xltravel-select.co.za May 15, 2024, 11:17 AM

Cyril baby,,have a look at the difunctional money pit that is the UK's NHS and take note!

Colin Louw May 15, 2024, 11:20 AM

I really hope that Steenhuizen actually manages to engage brain before mouth on this issue. Can he not see the carrot dangling in front of him?? It is such an obvious ploy an I am sure Helen Z does see what the Ramaposers are doing - get the DA to make a case, trumpet to the dumb electorate "DA is against national healthcare for you and your kids!!" and get an additional maybe 2 or 4% of the vote. If they do rush to court , even I would have doubts about putting in a vote for the DA because they are then so effing stupid, one cannot really back them!

tpdutoit May 15, 2024, 11:58 AM

I would target all medical aid members and point out what the NHI will take from them and what it will give. On all media fronts.

Con Tester May 15, 2024, 11:29 AM

It is both surprising and depressing that by far the majority of voices clamouring about Ramaposeur’s imminent signing of the NHI Bill keep missing the point on which the implementation of the NHI scheme hinges crucially. On its own, signed into law or not, the bill is a totally lame duck. To swim, it will need further legislation that governs and regulates funding and disbursements from National Treasury—a so-called “Money Bill.” Only the Minister of Finance is empowered to introduce such legislation. The short of it is that without this additional legislation, the NHI Bill has no teeth whatsoever. Moreover, after the elections, the ANC may well have lost its national majority that would allow it to force such funding legislation through parliament virtually unopposed with the required majority. The above detail is pointed out in the final section of the linked-to article in this writeup’s penultimate paragraph citing Dr Pearmain, but it seems that it simply gets ignored in the hot-headed rush to disgorge outrage and condemnation. And so, for now, this whole NHI fracas looks a lot like ANC electioneering theatre, underscoring once again Ramaposeur’s standing as a shifty conman.

Llewellyn Curlewis May 15, 2024, 12:06 PM

Ramaphosa only uses private hospitals and expects doctors from the same minority he says are scared of the bill to implement. If doctors say no this is dead in the water

eposmygerus May 15, 2024, 02:08 PM

The idea of NHI is currently misunderstood by a lot of people. Obviously the segment of the population that do not pay tax, that are currently forced to use the free government healthcare system are ecstatic. They have a promise to lie in a world class hospital without contributing. Under NHI, tax paying citizens and companies will have an increased tax burden which will impact them dramatically. Then as reward.... 1) You will now no longer phone your trusted GP for a consult or referral to a specialist or hospital of your choice. 2) Your first stop will be to an administrator who will decide if you even need to see a doctor, and then you will be told who that doctor is. This administrator is likely to be as efficient as those people currently employed at the Dept of Home Affairs. 3) Similarly, your doctor will be seeing patients allocated to them by your friendly administrator. 4) So the current Doctor / Patient / Service provider relationship will be a thing of the past. 5) You who pay the highest NHI tax, you can be expected to be allocated to one of the current government hospitals in all its glory, with no food and linen, when all the currently private hospitals are fully booked. This includes your children. And if you are paying the additional fee to belong to a medical aid, and the medical service is listed under NHI, they will not be able to help you! Think about this carefully. NHI is a fund, nothing about it works to improve the state healthcare offering.

Ex Pat May 15, 2024, 03:26 PM

And like vultures surrounding a carcass, the major players in this pantomime are the lawyers, licking their collective lips in glee at the inflated taxpayer funded fees they will earn.

cwf5108@gmail.com May 15, 2024, 09:51 PM

This attempt to gain more votes, if it succeeds in getting the solicited votes, will firstly take some time to be implemented, which will allow those top-earning individuals in the RSA to depart to saner countries to escape its disastrous effects, whilst leaving the rest of those that cannot escape, to suffer under the degradation of all healthcare in the RSA. The current top Healthcare institutions as well as most doctors and definitely specialists will "take their money and also leave the RSA and all healthcare will collapse and hospitals will all be renamed as "funeral parlors".

Brian Algar May 16, 2024, 08:15 AM

I think the moronic individuals that think signing this bill which they know is going to be taken to court, should be held personally responsible for the costs should the court find against them. They will then have to pay the costs of this shameless electioneering ploy, instead of the taxpayers.