Blessing Utete – Managing Executive: Old Mutual Corporate Consultants
In a transformative push towards closing the healthcare gap amid the gradual implementation of the National Health Insurance (NHI) system, employer-sponsored private health insurance has emerged as the ideal solution to support South African employers and their workforce.
Blessing Utete, Managing Executive of Old Mutual Corporate Consultants, says private health insurance can safeguard the health and productivity of employees. “The reality facing our healthcare system calls for immediate, innovative solutions to bridge the gap until the NHI’s full implementation,” he said.
Utete points out that the allocation of R1.4 billion to the National Health Insurance (NHI) grant by the National Treasury, as part of the Department of Health’s R848 billion budget for the 2024 medium-term, underscores a pivotal moment for South Africa’s healthcare landscape. Finance Minister Enoch Godongwana’s 2024 Budget speech reiterated the government’s unwavering commitment to the NHI policy but also highlighted the enormity of preparatory work required to pivot South Africa towards a more inclusive and equitable healthcare system.
Utete notes that this prioritisation of the NHI system has spotlighted the urgent need for quality healthcare access for all citizens, particularly those in lower-income brackets.
“The public healthcare sector, plagued by challenges such as nursing staff shortages, long queues, and a scarcity of essential medicines, struggles to meet the surging demand for affordable medical treatment. Therefore, a well-funded and efficient universal healthcare system would alleviate all these issues and make quality healthcare available to the most.”
A recent report, grounded in the 2023 Edelman Trust Barometer Special Report: Trust and Health, underscores the expectation among employees for their employers to play a significant role in ensuring their health and wellbeing. This expectation spans various sectors, with exceptionally high demand in healthcare, food and beverage, tech, retail, and financial services industries.
However, a discrepancy emerges as lower-income employees often find themselves without adequate health coverage, a gap that private health insurance is uniquely positioned to fill. Utete says an affordable healthcare solution encompassing Primary Care, Gap Cover, and Ancillary products provides ideal cover for employees not covered by a medical aid scheme.
“Our mission as industry together with government is to ensure that no employee, irrespective of their income level, is left behind in accessing quality healthcare,” Utete explains. “This initiative not only aims to alleviate the immediate pressures on the public healthcare system but also to foster a healthier, more productive workforce.”
Utete notes that health insurance is designed not to compete but to complement the existing healthcare framework by providing an accessible option for those currently reliant on an overstretched public system.
This approach is especially pertinent as South Africa navigates the complexities of implementing the NHI scheme. “While universal healthcare is a noble and necessary goal, the reality is that its successful establishment is a long-term endeavour. In the interim, private health insurance offers a practical, beneficial solution for employers and employees,” Utete remarks.
Utete advises employers to view private health insurance as an essential component of their employee benefits package to fulfil immediate healthcare needs and as a strategic investment in their workforce’s overall health and productivity.
“As South Africa stands on the brink of a healthcare revolution, the role of private health insurance as a bridge to the future cannot be overstated. The current options and initiatives exemplify a proactive, compassionate approach to addressing the healthcare needs of South Africa’s workforce, showcasing the invaluable role of employers in fostering a healthier nation,” Utete concludes.
ENDS
