Health Minister Sets Aside R74 Million to Defend National Health Insurance Act Against Mounting Legal Challenges

Health Minister Aaron Motsoaledi reveals a R74 million litigation budget as the Constitutional Court prepares to hear 15 challenges against the NHI Act in May 2026.

By: AXL Media

Published: Apr 25, 2026, 8:06 AM EDT

Source: Information for this report was sourced from Independent Online (IOL)

Massive Litigation Budget Amidst Proclamation Delays

The South African Department of Health has earmarked R74 million specifically for legal fees to defend the National Health Insurance (NHI) Act. Health Minister Aaron Motsoaledi revealed that the government is currently facing 15 separate legal challenges against the Act. During a parliamentary briefing, the Minister noted that the average cost of defending a single case ranges between R2.5 million and R3 million. This significant budgetary allocation follows a period where litigation costs have steadily climbed; ten months ago, the department had reported spending only R9.1 million on NHI-related legal battles. The funds are designated for a team of six senior counsels, ten junior counsels, and several attorneys tasked with protecting the legislation in court.

Constitutional Court Set for Landmark Hearing

The legal battle is scheduled to reach a turning point next month, as the Constitutional Court has set aside May 5 to May 7 to hear challenges regarding the NHI’s constitutionality. The Board of Healthcare Funders and the Western Cape Government are expected to lead the arguments, primarily contending that Parliament failed to conduct proper public consultations before the Bill was passed and signed into law. President Cyril Ramaphosa has intentionally delayed the proclamation of any sections of the Act, opting to wait for the Constitutional Court’s judgment on these public participation challenges. All parties have agreed to stay NHI-related cases until this definitive judgment is handed down.

Advertising Budget Scrutiny and Shift in Strategy

In contrast to the multi-million rand legal budget, the Department of Health has allocated no specific funds for NHI advertising in the 2026/27 financial year. This marks a sharp shift from previous years; between April 2024 and January 2025, the department drew criticism for spending R28.4 million on NHI-related promotional activities. For the current cycle, the Minister stated that communication will be limited to the "NHI Change Champions" campaign, an information-based initiative aimed at healthcare employees and the public using existing facility communication channels. This strategic pivot appears to prioritize legal defense and internal system strengthening over broad public marketing campaigns.