Issued by Department of Health
28 February 2008
The Minister of Health, Dr Manto Tshabalala-Msimang held separate follow-up meetings with representatives of the private hospital industry and medical schemes in Cape Town today to discuss the challenge of increasing private health care costs.
The Minister welcomed the efforts that have been made by some of the private hospital groups to adjust the tariff increases for 2008 towards the CPIX. However, there were concerns from schemes that adjustments announced have not translated to any savings that can be passed on to the consumer.
The schemes reported on the efforts that have been made to reduce non-health costs in the medical schemes
There was commitment at both meetings that the negotiations for the next year's tariff adjustment should be better handled, with Department of Health seeking to protect the interest of the consumers.
Minister Tshabalala-Msimang announced that the Department of Health will be introducing amendment to the National Health Act to ensure transparency and fairness in the negotiation of hospital tariffs for the benefit of the consumer. The initial draft of the amendment bill covering the financing of private health will be discussed by the National Health Council (made up of the Minister and Health MECs) tomorrow. The bill will thereafter be submitted to Cabinet before it is published for consultation.
Minister Tshabalala-Msimang also announced that the Department of Health will also be submitting to Cabinet and to Parliament the amendments to the Medical Schemes Act. The amendments will provide for the establishment of the risk equalization fund, restructure benefit package, improve cooperate governance and increase cover to low income groupings.
Minister encouraged both private hospitals and medical schemes to make input into the two legislative processes.
Contact: Sibani Mngadi @ 0827720161