The DA has submitted our comments on the proposed block exemption regulations that will allow for stakeholders to collectively determine tariffs for healthcare services, diagnosis and treatment codes, and quality metrics. (Please see attached).
The proposed regulations attempt to address issues in the private healthcare sector which have come under fire for being uncompetitive. This includes the tariffs for healthcare services, which are the fees or rates that medical aids pay to the healthcare providers for treatment that a patient receives.
To remedy the uncompetitive nature of the industry, the Minister of Trade Industry and Competition has proposed reform for the determination of tariffs. The DA continues to advocate for the adoption of health policies to ensure universal healthcare for all, but this proposed reform does not achieve this, nor will the National Health Insurance (NHI) Act in its current form.
The proposed block exemption abuses the Competition Act, fails to follow proper parliamentary process, ignores much-needed structural reform, and introduces a biased dispute resolution system, and will not serve its intended purpose to make private sector health prices more affordable.
Coding structures, the determination of quality measurements/metrics, medicine formularies and treatment protocols/guidelines, the establishment of negotiating structures and allocating responsibilities to existing Departments or regulators, and determining the appointments of a Multi-Lateral Negotiating Forum (MLNF) and decisions on who may be included, should be addressed by Health policy, legislation, and regulations, not the Competition Act.
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These regulations not only overreaches but also fails to address the complexity of the problem as identified by the Health Market Inquiry Report and ignores the Report's recommendation of holistic reform. The draft regulations might even have the unintended consequence of supplier-induced demands.
The only way to curb the cost of private health care is complete structural reform that will benefit both the private health sector and their patients.
We urge the public to urgently email their comments and oppositions before 31 March 2025 to the Minister of Trade, Industry and Competition, for the attention of Dr Ivan Galodikwe (IGalodikwe@thedtic.gov.za) or hand deliver it to the 3rd Floor, Block E, 77 Meintjies Street, Sunnyside, 0132.
