The richest 40% of SA pays for 87% of the country's health care - Econex

Health minister, Dr. Aaron Motsoaledi and the government still seem committed to the National Health Insurance (NHI).

Dr Paula Armstrong, Economist at Econex says the poor certainly receive a much smaller proportion of overall health care than the rich in South Africa.

A new report on health care financing by Econex, an economics research consultancy started by University of Stellenbosch economics professors disagrees with governments research with regards to the financing of the health care scheme.

What our research finds is that the wealthiest 40% of the population in South Africa, finances roughly 86% of healthcare in the country.

Dr Paula Armstrong, Economist at Econex

What we're talking about here is tax contributions, medical scheme contributions and out of pocket payment for health care in South Africa.

Dr Paula Armstrong, Economist at Econex

We aggregate that across the different parts of the socio-economic distribution and then divide this up by those socio-economic groups to see which groups contribute the largest portion explains Armstrong.

And we find there that the largest proportion comes from the wealthiest 20% of the population and the second wealthiest 20% of the population.

Dr Paula Armstrong, Economist at Econex

She says the one portion of the financing, is largely attributed to tax contributions.

Listen to the full interview in the clip below:


This article first appeared on 702 : The richest 40% of SA pays for 87% of the country's health care - Econex


CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
 Motsoaledi: SA education system still reeling from 'poisonous' Bantu education

Motsoaledi: SA education system still reeling from 'poisonous' Bantu education

Motsoaledi discusses feedback from the ANC NEC Subcommittee at the ruling party's National Policy Conference.

Motsoaledi says new NHI will bring about radical change

Motsoaledi says new NHI will bring about radical change

Health Minister Aaron Motsoaledi released the NHI policy document and promised health care would benefit both rich and poor.

Medical aid schemes divide the rich and poor - SA Health Professions Council

Medical aid schemes divide the rich and poor - SA Health Professions Council

SA Health Professions Council says medical aid schemes should be abolished in order to improve the healthcare system.

Minister Motsoaledi is determined to transform SA's healthcare system - #NHI

Minister Motsoaledi is determined to transform SA's healthcare system - #NHI

Health Minister Aaron Motsoaledi maintains that NHI is the only way to balance the scales of public & private healthcare system.

Motsoaledi: NHI will allow for private and public healthcare options

Motsoaledi: NHI will allow for private and public healthcare options

Health Minister Aaron Motsoaledi says patients will be able to use any accredited healthcare facility that meets the NHI criteria.

Motsoaledi slams claims by Free Market Foundation discrediting NHI

Motsoaledi slams claims by Free Market Foundation discrediting NHI

The Free Market Foundation says the National Health Insurance (NHI) scheme does not offer optimal healthcare access for the poor.

How the National Health Insurance scheme will work

How the National Health Insurance scheme will work

Health Minister Dr Aaron Motsoaledi clarifies how the NHI system will work amid claims that it could be made compulsory.

Popular articles
Lessons from the spectacular collapse of Steinhoff (e.g. diversity matters)

Lessons from the spectacular collapse of Steinhoff (e.g. diversity matters)

Bruce Whitfield interviews Gordon Institute of Business Science Dean (and marketing expert) Professor Nicola Kleyn.

Number of South Africans visiting the seaside has dropped

Number of South Africans visiting the seaside has dropped

Fedhasa's CEO is encouraging South Africans to take a look at the specials that are currently out there and make their bookings.

Casac to challenge Zuma's appeal of Abrahams High Court order

Casac to challenge Zuma's appeal of Abrahams High Court order

The National Prosecuting Authority (NPA) will appeal a High Court order that its head Shaun Abrahams leave office.

Instead of investigating state capture they are investigating me - Jacques Pauw

Instead of investigating state capture they are investigating me - Jacques Pauw

Journalist and author Jaques Pauw says he doesn't understand why he being investigated and summoned to appear before police.

 Metrorail central line trains suspended due to vandalism

Metrorail central line trains suspended due to vandalism

Metrorail regional manager, Richard Walker says criminals are making it hard for them to operate in the area.

Steinhoff money woes and why you should care

Steinhoff money woes and why you should care

The company lost around R100 billion leaving the JSE reeling in one of the biggest private sector business scandals.

How businessman Max Lichaba struck gold with his jewellery company

How businessman Max Lichaba struck gold with his jewellery company

Entrepreneur Max Lichaba built his own empire and is the CEO of Lichaba Creations and several other businesses. This is his story.