VAST-Ghana has called for the uncapping of the National Health Insurance Levy to reduce pressure on the National Health Insurance Scheme. It has also recommended revisions to betting and excise taxes to address public health issues, particularly regarding non-communicable diseases. Increased revenues from these taxes should be earmarked for health interventions.
The Vision for Accelerated Sustainable Development – Ghana (VAST-Ghana) has advocated for the Ghanaian government to uncap the National Health Insurance Levy (NHIL) in order to alleviate pressure on the National Health Insurance Scheme (NHIS). VAST-Ghana asserts that uncapping NHIL, as previously promised by the President, could provide essential financial resources to reduce the strain on both NHIS and patients.
Mr. Labram Musah, Executive Director of VAST Ghana and National Coordinator of the Ghana NCD Alliance, has proposed that the Ministry of Health initiate amendments to the earmarked Funds Capping and Realignment (Act 947). The current capping law limits the NHIL allocation to the NHIS, with less than 60 percent of NHIS budget allocated to claim payments, impeding efficiency and affecting resource distribution.
The organization indicated that the uncapping of NHIL would significantly benefit individuals suffering from non-communicable diseases (NCDs) who currently face high out-of-pocket expenses for medications and treatments. They criticized the cap as detrimental, hindering the NHIS’s financial potential and operations.
Furthermore, VAST-Ghana has suggested several measures for consideration in the 2025 budget, including an upward revision of the betting tax and the restructuring of this tax. The group noted the increasing prevalence of sports betting, particularly among youth, which contributes to concerning issues such as mental health disorders, financial instability, and rising non-communicable disease rates.
Addressing public health, VAST-Ghana urged the government to review excise taxes on unhealthy products—such as tobacco and sugar-sweetened beverages. In 2023, Ghana implemented excise taxes under the Excise Duty Amendment Act which were not indexed to inflation, leading to decreased effectiveness over time. Regular reviews of these taxes are recommended by the World Health Organization to ensure they remain impactful.
According to the Ghana Revenue Authority (GRA), excise tax revenues have risen significantly, with an increase from GH¢228.62 million in 2012 to GH¢1,325.57 million in 2023, following the latest tax adjustment. VAST-Ghana stresses the necessity of designating a portion of these revenues to fund specific health initiatives targeting non-communicable diseases.
In conclusion, VAST-Ghana advocates for the uncapping of the National Health Insurance Levy to relieve financial pressures on the National Health Insurance Scheme and to enhance support for individuals with non-communicable diseases. The organization further emphasizes the importance of revising betting and excise taxes to address growing public health concerns and to fund health initiatives effectively. The suggested measures reflect a strategic approach to improve health financing in Ghana, ultimately aiming to mitigate the burden of NCDs in the population.
Original Source: www.ghanabusinessnews.com
