Ghana Government Urged to Uncap NHIL to Alleviate NHIS Financial Strain
VAST-Ghana has urged the government to uncap the National Health Insurance Levy (NHIL) to relieve the financial burden on the National Health Insurance Scheme (NHIS). Mr. Labram Musah highlighted that amending the current capping law would allow NHIS to access funding more effectively. The statement also recommended a review of excise taxes and new measures to counteract sports betting’s negative impact on mental health and NCDs.
The Vision for Accelerated Sustainable Development – Ghana (VAST-Ghana) has urged the government to uncap the National Health Insurance Levy (NHIL) to alleviate the financial burden on the National Health Insurance Scheme (NHIS). According to VAST-Ghana, this uncap, as previously promised, could provide substantial financial resources, reducing pressures faced by the NHIS and patients alike.
Mr. Labram Musah, Executive Director of VAST-Ghana and National Coordinator of the Ghana NCD Alliance, emphasized the necessity for the government to amend the earmarked Funds Capping and Realignment (Act 947). Currently, the NHIS receives less than its full allocation of NHIL due to capping, compromising resource efficiency. Consequently, less than 60% of the NHIS budget is directed toward claim payments.
Additionally, the uncap of the NHIL is anticipated to significantly benefit individuals suffering from non-communicable diseases (NCDs). High out-of-pocket expenses for medications and treatments pose challenges for these patients. The existing cap negatively impacts potential revenue for NHIS operations, hindering effective healthcare delivery
The statement also included urgent recommendations for the government’s 2025 budget, such as revising betting taxes. With the increase in sports betting among youth, there has been a rise in mental health issues and social instability, linked to betting addiction, anxiety, and substance abuse, thereby exacerbating NCD cases.
Furthermore, VAST-Ghana proposed a review of excise taxes on unhealthy products, including tobacco and sugary drinks. Although the government introduced excise taxes on such products in the Excise Duty Amendment Act, 2023, the lack of inflation benchmarking could diminish their effectiveness over time, leading to potential revenue losses.
According to the Ghana Revenue Authority (GRA), excise tax revenues have increased significantly, from GH¢228.62 million in 2012 to GH¢1,325.57 million in 2023, following the introduction of the new tax in April. VAST-Ghana advocates for a portion of excise tax revenue to be designated for targeted health interventions, particularly for NCDs.
Additionally, the statement applauded President John Dramani Mahama’s initiative to create the Ghana Medical Trust Fund (MahamaCare), which intends to finance NCD treatment. NCDs account for 45% of annual deaths in Ghana, making this initiative critical for public health. The government was also urged to utilize the COVID fund to bolster support for NCDs and the Ghana Medical Trust Fund.
The call to uncap the National Health Insurance Levy by VAST-Ghana emphasizes the potential for improved funding of the National Health Insurance Scheme, addressing the acute financial challenges it faces. Adjusting budgetary policies and taxes could provide necessary resources to manage NCDs effectively and promote public health. Initiatives like the MahamaCare fund signify a vital step towards combating the rising prevalence of NCDs globally and within Ghana.
Original Source: www.ghanabusinessnews.com
