South Africa Changes Laws to Allow Medical Aid to Pay for Covid-19 Vaccines



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South African health insurance companies, commercial organizations and the government are developing a program in which the private sector will help fund Covid-19 vaccines for people who are not covered by insurance.

Legislation has been changed to allow companies to fund vaccines for people without health insurance and the talks are now focused on the number of people who can benefit, said Stavros Nicolaou, head of the B4SA Health Working Group, a grouping of South Africa’s largest business organizations.

In addition to health insurers, companies like miners can contribute funds so their workers can be covered, he said.

“We are looking at a model of coverage for discovered patients,” he said in an interview Monday. “For each person financed, there will be a contribution to the unfunded.”

The talks come as the South African government faces increasing criticism from unions, health officials and opposition parties for failing to obtain vaccines even as at least 29 nations begin to inoculate their populations.

The country has yet to conclude direct supply agreements with pharmaceutical companies. It expects to start getting vaccinations in the second quarter to cover a tenth of its nearly 60 million people through the Covax initiative, which is trying to ensure equitable access to vaccines.

In 2019, 17% of South Africa’s population was covered by health insurance, according to the national statistical agency. South Africa, with 1.13 million confirmed infections and more than 30,000 deaths, is the African nation hardest hit by Covid-19.

Allowing medical companies or insurers to import vaccines only for their own members or employees could create tensions in South Africa, which is one of the most unequal societies in the world. The government is already struggling to meet a series of economic challenges, with many state-owned companies dependent on budget bailouts.

Adrian Gore, CEO of Discovery Ltd., South Africa’s largest health insurance company, leads a panel looking at how the program will work.

The companies are also trying to speed up the arrival of vaccines to the country, Nicolaou said. “We need to change the public narrative,” he said. “How do you speed up time?”


Read: South Africa offered a discount on Covid-19 vaccines, but the government says it is still too much



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