The National Health Insurance Scheme (NHIS) in Ghana, introduced in 2003, was created with the vision of providing accessible healthcare for all citizens, especially those in rural and underserved areas. One key funding source for the NHIS is the National Health Insurance Levy (NHIL), a 2.5% levy on most goods and services. However, over the years, the NHIL has been subject to a cap, which has limited the resources available for the scheme.
In recent discussions, there has been growing support for “uncapping” the NHIL, or removing the restrictions that divert a portion of the collected funds elsewhere. This change, adopted by John Mahama and the NDC as a policy initiative in improving healthcare delivery in their next government could profoundly impact Ghana’s healthcare landscape.
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Press release
For immediate release
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John Mahama’s uncapping of the National Health Insurance Levy: A Path to Improved Healthcare for all Ghanaians
Accra, Ghana 1 November 2024.
The National Health Insurance Scheme (NHIS) in Ghana, introduced in 2003, was created with the vision of providing accessible healthcare for all citizens, especially those in rural and underserved areas. One key funding source for the NHIS is the National Health Insurance Levy (NHIL), a 2.5% levy on most goods and services. However, over the years, the NHIL has been subject to a cap, which has limited the resources available for the scheme. In recent discussions, there has been growing support for “uncapping” the NHIL, or removing the restrictions that divert a portion of the collected funds elsewhere. This change, adopted by John Mahama and the NDC as a policy initiative in improving healthcare delivery in their next government could profoundly impact Ghana’s healthcare landscape.
Understanding the National Health Insurance Levy and the Crippling NPP Cap
The National Health Insurance Levy is primarily intended to provide a steady source of funding for the NHIS. It ensures that funds flow consistently to the scheme, providing the financial stability needed to improve access to healthcare services. The levy has been a cornerstone of Ghana’s healthcare funding since its inception, contributing billions of Ghanaian cedis to the NHIS.
However, the “cap” on the NHIL by the Nana Addo, Bawumia government means that only a portion of the funds collected from the levy is allocated directly to the NHIS. The cap allows some of these funds to be diverted for other government expenses, reducing the amount available for healthcare. NDC’s proposal of uncapping argue that this limitation restricts the NHIS’s potential to expand and offer higher-quality services.
Why Uncapping the NHIL Matters to John Mahama and NDC
- Increased Funding for Healthcare: Uncapping the NHIL would result in an immediate increase in the funds available for the NHIS. These additional resources could help expand coverage, include more essential medications and treatments, and improve healthcare infrastructure, especially in rural and underserved regions.
- Reduction in Out-of-Pocket Expenditures: With uncapped funds, the NHIS could reduce or eliminate some of the costs that currently fall on patients, making healthcare more affordable.
- Enhanced Service Delivery and Quality of Care: Healthcare quality remains a concern in Ghana. With uncapped NHIL funds, more resources could be allocated to training, infrastructure, and equipment, ultimately improving patient care standards.
- Alignment with Universal Health Coverage Goals: The next NDC government is committed to achieving Universal Health Coverage (UHC) by 2030. A fully funded NHIS, made possible by an uncapped NHIL, would accelerate progress toward this goal. The additional funding could help expand services to more vulnerable populations, fulfilling the UHC mandate.
- Economic Productivity and National Development: Healthier populations are more productive and contribute positively to the economy. By uncapping the NHIL and strengthening the NHIS, Ghana can build a healthier, more productive workforce, which could lead to higher national productivity and faster economic development.
The Way Forward: John Mahama and Stakeholder Engagement
To successfully uncap the NHIL, John Mahama has demonstrated that he is willing to work with stakeholders, which will include his Finance Ministry, healthcare providers, civil society organizations, and the general public, to build consensus and address potential concerns. This collaboration should aim at ensuring that uncapping the NHIL will lead to tangible improvements in healthcare delivery without compromising other areas of national development.
Conclusion
Uncapping the Ghana National Health Insurance Levy presents a significant opportunity to enhance the country’s healthcare system but this can only happen by voting massively for John Mahama and NDC in 38 days come December 7. With this initiative , the NHIS would be exposed to greater pool of financial resources that could expand its coverage, improve the quality of services, and bring Ghana closer to achieving UHC with the next NDC government.
Signed
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