Cape Town - The planned National Health Insurance will have disastrous unintended consequences for a country that cannot afford them, the FW de Klerk Foundation said on Friday.
The foundation said the NHI, as set out in draft legislation, was illustrative of the African National Congress's policy of wealth redistribution and while there were many good examples of national health care services in first world countries, it should be born in mind that South Africa was not a first world state.
"The ANC’s first motivation is its ideological commitment - confirmed by its Nasrec resolutions - to impose equality through wealth redistribution - rather than by evolving equality through decent education, sustained economic growth and job creation," the foundation said.
It said the ANC was right about the inequality of health care service, while noting that this was not skewed along racial lines, but was ignoring warnings from quarters including National Treasury and the Davis Tax Committee, that its planned national service was not affordable unless the country were to see sustained economic growth.
The foundation said while it was true that 4.5 percent of GDP is spent on private healthcare for some 16 percent of the population, the ANC was forgetting that the money spent by citizens and companies for private medical care was discretionary spending from their after-tax incomes.