Framework ‘critical’ to determine healthcare tariffs - Tau
The Minister of Trade, Industry, and Competition says the issuing of a draft regulatory framework for determining tariffs in the private healthcare sector is a critical step towards addressing the country's high healthcare costs.
The Draft Interim Block Exemption for Tariffs Determination in the Healthcare Sector, 2025, was gazetted several days ago.
"There is a serious concern about access to private healthcare in the country given the high levels of market concentration and high prices. The cost of private healthcare should remain in check to ensure that majority of South Africans have access to affordable healthcare,” says Minister Parks Tau.
The Competition Commission's Health Market Inquiry found high and rising healthcare and medical scheme coverage costs and a decline in private health sector benefits.
READ: Motsoaledi: SA, US only countries paying cash for healthcare
It also found a lack of a tariff determination framework, which led to abuse in the pricing of prescribed and non-prescribed minimum benefits.
Tau says there's no structured and transparent price determination framework for healthcare services.
"The current practice involves medical schemes unilaterally revising the tariffs that they are willing to pay and health professionals either accepting these terms in return for direct payment or charging a higher rate. In the latter case, the higher rate is generally collected from the patient who is liable for a portion not covered by their medical scheme."
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