Healthcare block exemptions

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Minister of Trade, Industry & Competition Parks Tau has opened the door to potentially lower healthcare costs, with the National Health Insurance (NHI) still years away from full implementation.
DEAR-SOUTH-AfFRICA

2 comments delivered to the government so far (closes 28 March 2025)

The Minister of Trade, Industry & Competition has called for public comment on the draft Interim Block Exemption for Tariffs Determination in the Healthcare sector.

This exemption would allow healthcare providers, funders, and other stakeholders to collectively determine tariffs for healthcare services, diagnosis and treatment codes, and quality metrics.

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    This exemption would allow healthcare providers, funders, and other stakeholders to collectively determine tariffs for healthcare services, diagnosis and treatment codes, and quality metrics. It would ultimately give them greater power when dealing with hospitals and drug companies, achieving better prices and benefitting medical aid members.

    The proposed interim block exemption aims to address this by enabling a structured, multilateral tariff determination process.

    “A multi-stakeholder tariff determination framework for healthcare services is at the centre of the proposed interim block exemption consistent with the recommendations of the HMI,” said the DTIC.

    “This will contribute to the long-term goal of reducing costs, promoting universal access to health and enhancing the quality of healthcare.”

    The Board of Healthcare Funders (BHF) has reservations about the new dispensation.

    The BHF is concerned that the Department of Health would manage the block exemption negotiation process, arguing that it is actively keeping private healthcare expensive to justify the NHI.

    It also argued that to make private healthcare more affordable, the Competition Commission should grant exemptions to allow medical schemes to negotiate tariffs with healthcare providers.
    BussinessTech