Ghana government urged to uncap NHIL to ease pressure on NHIS

The Vision for Accelerated Sustainable Development – Ghana (VAST-Ghana) has urged the government to uncap the National Health Insurance Levy (NHIL). This change would help ease pressure on the National Health Insurance Scheme (NHIS).

Mr. Labram Musah, Executive Director of VAST Ghana, made this call. He stated that uncapping the NHIL could provide additional funds for the government. This would reduce financial strain on both the NHIS and patients.

Currently, the NHIS does not receive its full NHIL allocation due to a capping law. Resources are also being diverted to non-core activities, which affects efficiency. As a result, less than 60 percent of the NHIS budget goes to claim payments.

Uncapping the levy would benefit many individuals with non-communicable diseases (NCDs). Patients face high out-of-pocket costs for medications and long-term treatment. The cap is viewed negatively by health professionals as it limits revenue for NHIS operations.

VAST-Ghana also suggested other measures for consideration in the 2025 budget. These include reviewing betting taxes and restructuring them as needed. The rise of sports betting among youth is causing public health issues like mental health disorders and financial instability.

Betting addiction has been linked to increased anxiety, depression, and substance abuse. These issues contribute to higher rates of NCDs such as cardiovascular diseases and hypertension.

The statement called for a review of excise taxes on unhealthy products like tobacco and sugary drinks. In 2023, new excise taxes were introduced under Act 1108 but were not adjusted for inflation.

Without regular adjustments, these taxes lose effectiveness over time, leading to revenue loss for the government. The World Health Organization recommends that these taxes be reviewed regularly.

The Ghana Revenue Authority (GRA) reported an increase in revenue from excise taxes. Excise tax revenue from sugar-sweetened beverages rose significantly from GH¢228.62 million in 2012 to GH¢1,325.57 million in 2023 after new tax implementation.

There is a need for the government to allocate part of this excise tax revenue to support health interventions related to NCDs. VAST-Ghana appreciates President John Dramani Mahama's plans for establishing the Ghana Medical Trust Fund (MahamaCare).

This fund will focus on financing treatment for NCDs, which cause over 41 million deaths globally each year. In Ghana, NCDs account for 45 percent of all annual deaths.

Finally, VAST-Ghana urged the government to repurpose COVID funds to support NCD initiatives and MahamaCare.