The department of health has set aside R74 million in the current financial year specifically to deal with legal challenges linked to the National Health Insurance (NHI) Act.
Health Minister Dr Aaron Motsoaledi confirmed the allocation in a parliamentary reply to member of parliament Philippus Adriaan van Staden.
The NHI aims to create a single, state-run healthcare fund to provide universal access to healthcare, and it is being challenged in court by organisations including opposition parties, medical schemes, and healthcare industry bodies, who argue it is financially unsustainable.
R2.5 million per case
Van Staden has asked the minister of health “what is the total cost incurred by the state to date in defending litigation related to the specified act and budgeted costs set aside in this regard”.
The minister’s reply revealed that there is a total of 15 cases and each costs between R2.5 million to R3 million.
“On average, each case costs us between R2.5 million and R3 million, and these cases have been going on for more than a year,” reads the reply.
“The money has been paid to six senior counsels, ten junior counsels and attorneys.”
R74 million earmarked for NHI cases
Motsoaledi added that the department has set aside R74 million in this regard for the 2026-27 financial year.
Van Staden further asked if there is any contingency plans the department of health has developed following the outcome of the court’s decision.
Motsoaledi replied: “The high court made an order with the agreement of all parties that all high court cases will be stayed and the proclamation of all sections of the act plus any implementation of the act will also be stayed (held in abeyance) until the Constitutional Court has passed judgement on two public participation challenges.
“It is unclear what contingency plans are referred to.”
Ramaphosa halts the rollout
This follows President Cyril Ramaphosa and Motsoaledi’s announcement that the implementation of the NHI Act, which was signed into law in May 2024, will be suspended until the ConCourt delivers its ruling.
The ConCourt hearing is set to take place from 5 to 7 May.
Government insists that the act is necessary and will help in addressing the massive inequality in healthcare in South Africa. However, concerns that it will provide another avenue for corruption in the country have been raised.
