Controversial NHI Act faces fresh legal challenge – Bundlezy

Controversial NHI Act faces fresh legal challenge

Business organisation Sakeliga has filed a new legal challenge against the National Health Insurance (NHI) scheme, accusing the Department of Health of using “delaying tactics” to prevent the courts from reviewing the controversial law.

The NHI Act is already facing multiple court cases from across South Africa, including those brought by medical aid groups, private healthcare organisations, business associations, trade unions, political parties, and the Western Cape government.

The legal challenges range from constitutional objections to questions about whether President Cyril Ramaphosa acted lawfully in signing the legislation earlier this year.

Government seeks consolidation

Health Minister Aaron Motsoaledi has asked the courts to consolidate all pending NHI cases into a single proceeding, saying this will save time and money.

The department also requested a stay on all constitutional challenges until the procedural matters have been finalised.

Sakeliga argues that this move would allow government to continue rolling out the NHI while avoiding judicial scrutiny for an indefinite period.

“This tactic amounts to an abuse of process by the state and a violation of constitutional accountability,” the group said in a statement.

Sakeliga added that delaying constitutional review would shield the government’s flawed NHI Act from being tested in court, while “inflicting ongoing harm on the public, taxpayers, healthcare services, and the economy.”

Counter-application to block rollout

In response, Sakeliga has filed a counter-application to stop any further implementation of the NHI if the government’s stay request is granted.

The organisation insists it is unconstitutional for the state to proceed with rollout while the legality of the law remains unresolved.

“If the court challenges to the NHI are stayed, the rollout of the NHI should also be stayed,” Sakeliga said.

The group warned that proceeding with implementation could cause irreversible damage to the healthcare sector, especially if the NHI Act is later declared unconstitutional.

NHI faces growing opposition

The NHI Act seeks to establish a single state-run fund to provide universal healthcare coverage to all South Africans, with funding drawn largely from taxes.

The plan has sparked fierce debate – supporters say it will promote equality in healthcare, while critics warn it threatens the survival of private medical aid and could place an unsustainable financial burden on the economy.

Sakeliga maintains that the government’s attempt to delay judicial oversight undermines the rule of law and erodes public trust.

“It is not the constitutional challenges to the NHI that should be halted, but the implementation of the NHI itself,” the organisation said.

The matter is expected to be heard in the coming months, as the battle over the future of South Africa’s healthcare system intensifies.

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