Ghana Government Urged to Uncap NHIL to Ease Pressure on NHIS

VAST-Ghana has called on the government to uncap the National Health Insurance Levy to alleviate financial pressures on the NHIS. The organization emphasizes the need for these changes to enhance healthcare for individuals with NCDs and recommends revisions to fiscal policies concerning betting and excise taxes. The establishment of the Ghana Medical Trust Fund is highlighted as a vital initiative for managing NCDs.

The Vision for Accelerated Sustainable Development – Ghana (VAST-Ghana) has formally urged the Ghanaian 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, uncapping the NHIL, as previously promised by the President, could significantly enhance government funding and reduce the financial strain experienced by patients and the NHIS.

In a statement by Mr. Labram Musah, Executive Director of VAST-Ghana, it was highlighted that the NHIS no longer receives full NHIL allocations due to the existing capping law. Furthermore, the diversion of resources towards non-core activities has hampered administrative efficiency; currently, only 60% of the NHIS budget is allocated to claim payments. Uncapping the NHIL is seen as essential to assist individuals suffering from non-communicable diseases (NCDs), who are currently facing exorbitant out-of-pocket expenses for necessary medications and treatments.

VAST-Ghana also recommended several measures for consideration in the 2025 budget. These include reviewing the betting tax structure, particularly due to the alarming rise in sports betting among youth that contributes to psychological health issues, financial problems, and social instability. Furthermore, the statement identifies a link between betting addiction and increased cases of anxiety, depression, and substance abuse, thus magnifying the NCD burden.

Additionally, it urged the government to reassess excise taxes levied on unhealthy products such as tobacco and sugar-sweetened beverages. Although the government implemented these taxes in the Excise Duty Amendment Act, 2023, they have not been adjusted for inflation, resulting in lower prices over time and a loss of potential revenue. Regular reviews of these taxes are necessary, as suggested by the World Health Organization, to ensure they remain effective.

The Ghana Revenue Authority (GRA) has reported a substantial increase in revenue from excise taxes, with collections rising significantly since their inception. For instance, excise tax revenue from sugar-sweetened beverages has surged from GH¢228.62 million in 2012 to GH¢1,325.57 million in 2023 following new tax implementations.

There is a pressing need for the government to designate a portion of excise tax revenues to support specific health initiatives, especially concerning NCDs and related health promotion efforts. VAST-Ghana expressed appreciation for recent initiatives, such as the plans for the Ghana Medical Trust Fund (MahamaCare) aimed at financing NCD treatments. With NCDs responsible for 41 million global deaths annually and representing 45% of fatalities in Ghana, this initiative is deemed critical. Furthermore, the organization suggested repurposing COVID-19 funds to bolster NCD support and the upcoming medical trust fund.

In summary, VAST-Ghana advocates for the Ghanaian government to uncap the NHIL to alleviate the financial pressures on the NHIS and improve healthcare access for individuals suffering from NCDs. The proposal includes revising excise taxes on unhealthy products, addressing the burgeoning issue of betting, and properly allocating tax revenues to support health initiatives. The implementation of the Ghana Medical Trust Fund represents a crucial step towards improving the treatment and management of NCDs in the country.

Original Source: www.ghanabusinessnews.com