01 - South African Healthcare Environment Flashcards

1
Q

What are the forces driving change?

A

A strong political agenda

An economic agenda

A vibrant consumer agenda

Socio-demographic demands

Bio- and medical technology innovation

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2
Q

What is the vision of the National Department of Health?

A

A long and healthy life for all South Africans

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3
Q

What is the mission of the National Department of Health?

A

To improve health status through

  • the prevention of illnesses and
  • the promotion of healthy lifestyles

and to consistently improve the healthcare delivery system by focusing on

  • access,
  • equity,
  • efficiency,
  • quality
  • and sustainability.
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4
Q

What is the current structure of the SA health system?

A

Dual/Two-tiered system divided across socio-economic line

A large public sector - 84% of the population
Mainly catering for all people who do not have access to private
sector healthcare;

A private sector - 16% of the population
Catering for the health needs of people having access to private funding.

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5
Q

How is healthcare funded in SA?

A

Government funding

  • General Tax
  • Dedicated Health Tax

Private funding

  • Medical Schemes
  • -Employer
  • -Individual
  • Health Insurance
  • -Individual

-Self Insurance

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6
Q

What are the current problems of the healthcare system and how will that change in the future?

A

Fragmented - Integrated
Hospital centred - Ambulatory
Specialist centred - Patient centred
Over-commercialtions - Value-based

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7
Q

What are the core principles of the NHI?

A

Universal access

Social solidarity

Equity

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8
Q

What is the purpose the NHI?

A

To create a

  • single,
  • centralized funding and administration system

consistent with the principles of

  • social solidarity
  • and universal coverage.
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9
Q

What will the NHI address?

A

An underfunded and overburdened public healthcare system;

A private health system that has become less affordable.

That will provide access to a benefit package of health services to all people in the country.

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10
Q

How will the NHI create a level playing field?

A

Create equitable distribution of resources resulting in high quality of health services for all the people;

Universal access to a of services for both the rich and poor

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11
Q

Why will the NHI be established?

A

To eliminate the impoverishing out-of-pocket payments and co-payments of those using the healthcare system;

To redistribute the human and material resources in a system that, at this time, is highly inequitable;

To improve the quality of health services;

To enhance access to essential services; and

To ultimately improve health outcomes for the majority of the people.

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12
Q

What is the definition of the NHI?

A

NHI is a health financing system that

  • is designed to pool funds
  • to provide universal access to quality, affordable personal health services
  • for all South Africans based on their health needs,
  • irrespective of their socio-economic status.

NHI will be implemented through the creation of a single fund that is publicly financed and publicly administered.

The health services covered by NHI will be provided free at the point of care.

NHI will provide a mechanism for improving cross-subsidisation in the overall health system.

Funding will be linked to an individual’s ability-to-pay and benefits from health services will be in line with an individual’s need for health care.

Implementation of NHI is based on the need to address structural imbalances in the health system and to reduce the burden of disease.

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13
Q

What are the features of the NHI?

A

UMCFSSS

Universal access: the right to access quality health services will be on the basis of need and not socioeconomic status.

Mandatory prepayment of health care: NHI will be financed through mandatory prepayment

Comprehensive Services: will provide a continuum of care from community outreach, health promotion and prevention to other levels of care.

Financial risk protection: ensure that individuals and households do not suffer financial hardship and/or are not deterred from accessing and utilising needed health services.

Single fund: This refers to integrating all sources of funding into a unified health financing pool that caters for the needs of the population.

Single-payer: This refers to an entity that pays for all health care costs on behalf of the population.

Strategic purchaser: utilises its power as a single purchaser

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14
Q

How will universal access work under the NHI?

A

This principle secures equality in:

  • Access to a defined package of healthcare;
  • Irrespective of whether it is publicly or privately funded.

Under the proposed NHI it will ensure that all South Africans have access to comprehensive quality health care services.

This means that people will be able to access:

  • Health care services closest to where they live.
  • The health care services will be accessed at the appropriate level of care
  • and will be delivered through certified and accredited public and private providers
  • Using the NHI Card.
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15
Q

What are principles of the NHI?

A

AAAEEEPS

Right to ACCESS health care
-will ensure access to health care as enshrined in the Bill of Rights, Section 27 of the Constitution:

AFFORDABILITY
-Health services will be procured at reasonable cost that recognises the need for sustainability within the context of the country’s resources.

APPROPRIATENESS
-The health system will adopt innovative service delivery models that are tailored to local needs of the population and delivered at appropriate levels of care.

EQUITY
-NHI will ensure a fair and just health system for all and that those with the greatest health needs will be provided with timely access to health services

EFFICIENCY
-Health care resources will be allocated and utilised in a manner that optimizes value for money.

EFFECTIVENESS
-the extent to which an intervention results in expected outcomes

Health care as a PUBLIC GOOD
-Health care shall not be treated like any other commodity of trade, but as a social investment.

SOCIAL SOLIDARITY
-NHI will provide financial risk pooling to enable cross-subsidisation between the young and old, rich and poor as well as the healthy and the sick

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16
Q

How will the NHI be funded potentially?

A

Direct Taxes

  • Taxes imposed on individuals or entities in relation to their income, earnings or wealth.
  • Personal or corporate income tax

Indirect Taxation

  • Taxes levied on transactions or goods and services, irrespective of circumstances of buyer or seller.
  • VAT, National health insurance levy

Payroll Taxation

  • Taxes calculated on payroll, as either employer or employee contributions, or both.
  • Contribution to NHI deducted from pay check

Premiums
-Collection of premiums or membership contribution from employee or information sector

17
Q

What is the role of Medical Schemes in the NHI system?

A

Substitutive - Driven by breadth of coverage

  • Provides coverage that would otherwise be available from the state.
  • Purchased by those who choose to output of statutory health insurance or are excluded from participating in some or all aspects of the NHI system.

Complementary - Driven by Scope and Depth of coverage

  • Provides coverage for services exclude or not fully covered by statutory health insurance.
  • It sometimes covers whole areas of care.
  • It can also cover the statutory user charges where cost sharing exists.
  • It’s form is influenced by the nature of the benefits covered by statutory health insurance.

Supplementary - Driven by consumer preference

  • Usually covers the same range of services as statutory health insurance
  • aims to increase the choices of provider and level of amenities
  • By increasing the choices of provider it may also provide faster access to health care.
  • Usually sold in combination with complementary and/or substitute private health insurance.
18
Q

What is the overall objective of the Department with respect to Social Health Insurance?

A

To provide SHI in support of the social security net;

To achieve wider access to quality healthcare for more South Africans;

To transfer all employed people and their families onto a medical scheme – introduce mandatory cover;

Relieve the burden on the State.

19
Q

How would Social Health Insurance be achieved from the current medical scheme environment?

A

REF (Risk Equalisation Fund) provides equalisation mechanism;

Limited risk pools of individual medical schemes need to be merged into one large risk pool;

Schemes with lower risk profiles will cross-subsidize those with higher risk profiles;

PMB provides uniform benefits;

Tax reform to include:

  • Withdrawal of tax subsidies on medical scheme contributions
  • Introduction of income-based SHI tax.
20
Q

What are the principle objectives of the SHI as drafted in the Medical Schemes Amendment Bill of November 2006?

A

Establish the Risk Equalisation Fund (REF).

Restructure benefits to reduce complexity and promote cross-subsidisation.

Promote improved corporate governance among medical schemes.

Facilitate emergence of medical scheme products for low income beneficiaries.

21
Q

What is the purpose of the REF (Risk Equalisation Fund)?

A

Introduce risk cross-subsidization between schemes
(Key element in Open Enrolment / Community Rated structure)

Equalize beneficiary risk profiles in respect of

  • PMB
  • delivered at reasonable level of efficiency,
  • based on demographic profile (not actual claim costs)

Reduce the incentive & competition to attract good risk profile – eliminate “cherry picking”

Focus on efficacy and quality of care to their members

22
Q

What are the Risk Factors for REF purposes?

A

Age

Maternity

Possible inclusion of gender in future

Measures of chronic disease burden

  • Numbers with each CDL disease
  • Numbers with multiple CDL disease
  • Numbers with HIV and AIDS on ARV therapy.