Essay on The Liberation of South Africa

1372 Words 6 Pages
1. Introduction
The liberation of South Africa (SA) into an independent and democratic nation in 1994 was accompanied by drastic measures to amend persistent disparities especially those among different races. In this notion, many areas, healthcare were prioritised as one such important sector. Currently under the rule of the African National Congress (ANC) party, the South African government has recently published the National Health Insurance (NHI) Green Paper. This essay will discuss the economic incidence of implementing the NHI. Analyses of the financing and benefit incidences will be made for both the current health system and the newly proposed NHI. Finally, a plausible conclusion will be made based on the analysis of the analysis
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According to the A& M paper, it was discovered that personal income tax is remarkably progressive, excise taxes and fuel levies are regressive ad VAT is almost proportional. Another key finding was that out-of-pocket payments and medical scheme contributions are slightly regressive and highly progressive respectively Mils et al (2012:p.3) (Mills, et al., 2012). A summary of the financing incidence of out-of-pocket payments and medical scheme contributions is shown in Figure 1 and 2. In figure 1, the burden of the corporate tax is presumably shifted to consumers, an outcome that is contrary to Figure 3 which assumes shareholders to be liable for the full burden of corporate tax. Placing the scenarios shown in figures 1 and 3 into equilibrium is figure 3. What is more, almost exclusively due to medical aid scheme subscription, the overall financing of healthcare in South Africa is very progressive. The results in the A&M Paper support this further by illustrating that the current financing mechanism is in favour of the poor in that it progressive (Figure 3).
The information shown (See Figures 5 and 6 ) indicates that given different income groups in the South African economy, those in the higher quintile are paying more for healthcare funding than those in the lower quintile. However, the authors acknowledged that the most complex incidence analysis

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