VAST-Ghana urges the government to uncap the National Health Insurance Levy to reduce financial strain on the NHIS. They recommend amending the earmarked Funds Capping and Realignment Act and adjusting excise taxes on unhealthy products. Additionally, they advocate for funds from excise taxes to support NCD interventions and commend initiatives like the Ghana Medical Trust Fund.
The Vision for Accelerated Sustainable Development – Ghana (VAST-Ghana) has urged the government to uncap the National Health Insurance Levy (NHIL) to alleviate pressures on the National Health Insurance Scheme (NHIS). This adjustment could significantly increase government funds dedicated to the NHIS, thereby lessening financial burdens on patients and the system itself.
According to a statement by Mr. Labram Musah, Executive Director of VAST Ghana, effective measures must be initiated by the government to amend the earmarked Funds Capping and Realignment (Act 947). The current capping law restricts the NHIS from receiving its full NHIL allocation, resulting in resource diversion that impedes operational efficiency, with less than 60 percent of the NHIS budget allocated to claims.
The VAST-Ghana statement highlighted that uncapping the NHIL would greatly benefit individuals suffering from non-communicable diseases (NCDs), as these patients often face substantial out-of-pocket expenses for treatment and medications. The existing cap is viewed as detrimental to the health sector, undermining potential revenue generation for the NHIS.
The statement provided various recommendations for consideration in the 2025 budget, including an upward review of the betting tax and reformation of the tax structure. It expressed concerns regarding the rapid rise in sports betting, particularly among the youth, which contributes to various mental health crises and social instability.
Furthermore, the statement highlighted the increasing prevalence of betting addiction leading to mental health issues, substance abuse, and resulting NCDs such as cardiovascular diseases. It urged the government to reassess excise taxes on unhealthy products like tobacco and sugary beverages, noting that the current taxes, introduced under the Excise Duty Amendment Act, 2023, were not adjusted for inflation, leading to revenue loss over time.
In 2023, revenue from excise taxes, particularly on sugar-sweetened beverages (SSBs), surged significantly, according to the Ghana Revenue Authority (GRA). With the new tax implementation, excise tax revenue reached GH¢1,325.57 million in 2023, marking a substantial increase.
The statement suggested that a portion of the excise tax revenue should be allocated to specific health programs targeting NCDs. It commended President John Dramani Mahama for plans to establish the Ghana Medical Trust Fund (MahamaCare), an initiative aimed at financing NCD treatments, crucial given NCDs account for a notable percentage of annual deaths in Ghana.
Lastly, VAST-Ghana advocated for the repurposing of COVID-19 funds to support NCDs and the Ghana Medical Trust Fund. This holistic approach is necessary to strengthen health interventions in the country.
In summary, VAST-Ghana has called upon the government to uncap the National Health Insurance Levy, highlighting its potential to alleviate financial pressures on the NHIS. Key recommendations include revising the excise tax structure for unhealthy products and addressing the burgeoning impact of betting addiction. Furthermore, the establishment of the Ghana Medical Trust Fund represents a significant step toward improving funding for non-communicable disease treatments.
Original Source: www.ghanabusinessnews.com
