Health care financing in South Africa: Key issues

Overview Where do funds for health care come from and how do they flow through the health system? What might change in terms of health care funding in future? Where does government get its money from?

Important context

Flow of money in health systems Households Firms Providers Insurance Government tax

Resources and benefits in SA Less rich households Private providers Private insurance Public providers Richer households Government tax 16% 84% 44% 43% 13%

Possible changes to health financing Less rich households Private insurance Richest households Public funds Providers Firms

Government funding

Group work Consider questions to understand what you (as a citizen) think about: – Who should fund health services – How they should contribute to health care funding Want to know what you (as a citizen) prefers and why you prefer this

Group work Question 1 - Raise extra funds for improved health services by: – Increasing VAT – Increasing personal income tax – Getting companies/ businesses to pay extra tax Which type of tax would your community prefer and why, or would you prefer a combination of these taxes and why?

Group work Question 2 – Are there other ways that government could raise extra funds for improved health services? Why would your community prefer these funding options? Question 3 – Are there any groups in society who your community would think should not have to contribute to funding improved health services? If so, which groups and why these groups?