NHIA requires extra GHC 380m to settle claims for 2017

August 30, 2017
Source: Eugene Davis l thebftonline.com l Ghana
NHIA requires extra GHC 380m to settle claims for 2017


The National Health Insurance Authority (NHIA) requires additional funding of GH?379.69million from government to fully settle expected claims payment for the year 2017, although its books are expected to turn positive in 2018 and 2019.

According to the 2017 report of the National Health Insurance Fund Allocation Formula (NHIF), “The above projection assumes that the additional funding for claims payment in 2017 will be catered for in the 2018 fiscal year.”

But it indicates that: “In effect, projected income and expenditure for both 2018 and 2019 shows excess of income over expenditure, amounting to GH?0.61m and GH?458.25m respectively.”

The NHIA was allocated GH?1.8m for 2017 comprising statutory and Internally Generated Funds (IGF) excluding funding gap.

However, a total receipt, including funding gap amounted to GH?2.25m for 2017.

The report further noted that the projections were based on trends in average growth rates in each income and expenditure line item from the year 2014 to 2016, except for statutory incomes (NHIL and SSNIT), which were sourced directly from the annual budget statements of 2017 of Ghana.

It is anticipated that cost of items will not go beyond 20percent of the preceding year’s expenditure line items.

However, expenditure to the Ministry of Health is capped at GH?145m for the next two years, in order to stay within the statutory limit of 10percent of total expenditure of the allocated fund.

Furthermore, the report reveals that the medium-term income and expenditure plan from 2017-2019 would rise to GH?2.9m, with income expected from NHIL levies itself, SSNIT, Premium (informal sector), income on investment, processing fees, authentication service income and other income.

Expenditure on items such as biometric ID Cards and authentication system is projected to go up from GH?125m to GH?187m by 2019.

Other expenses would range from support to district offices, office buildings, per capita payment system, nationwide ICT system, archival system and document digitization, claims data capturing.

Section 42(1) of Act 852 stipulates that the Authority shall allocate and disburse moneys from the Fund in order to achieve the object of the Fund.

The Authority shall, in the preparation of the formula and disbursement of moneys from the Fund, ensure the sustainability of the Scheme.

Based on the objectives of the fund, the criteria for the allocation of the fund is applied to subsidy for premium for the exempt group, subsidy for claims equalization, allocation of claims subsidy by category, allocation of claims and premium subsidy by regions and other mandatory and administrative commitments of the NHIA.