Today's Labour News

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healthcareThe Times writes that the government's plan to ditch medical aid tax credits will have a disastrous effect on already cash-strapped citizens and force nearly 2 million people onto the over-stretched state health system.  

If the tax credit is removed, 22% of medical aid users will not be able to afford cover, Stellenbosch economics consultancy Econex warned in a report published on Friday.  That means 1.9 million of the 8 million medical aid members, including children, would have to drop out of the private healthcare system.  In a National Health Insurance (NHI) policy document released in July, Health Minister Aaron Motsoaledi said he wanted to remove the tax credit to users, which amounted to R20bn a year.  Paula Armstrong, author of the Econex analysis, said the rebate was intended to "alleviate some pressure on the state system”, but taking it away would make medical aid unaffordable for many middle-class people.

  • Read this report by Katharine Child in full at BusinessLive


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