Why NHIS is engulfed in so much debt – Sylvester Mensah explains

Sylvester Mensah, a former Chief Executive Officer of the National Health Insurance Scheme, NHIS, has explained why the scheme is overwhelmed with debt. According to him, some of the measures that were put in place to address the debt stock under the scheme before President Nana Addo Dankwa Akufo-Addo came into office were abolished by the government. He said the government needs to look critically at measures that would help project the scheme beyond the current level to the next level Speaking on Accra-based Ahotor FM, on October 26, Mr. Mensah explained, “We introduced capitation as a payment mechanism for our providers and capitation provides one of the efficient ways of ensuring greater efficiency within the health insurance system. “It was bringing good results and the NPP government decided to abolish it and so it has implications for cost – cost will go up – and cost has gone up…capitation gives fixed and clear amount over a certain period of time. “I think the other aspect that the government is looking at critically is the elements that require the Ministry of Health to initiate in order to project the scheme beyond this level to the next level. Thus, review of the entire pharmaceutical supply chain and introducing fixed contract arrangements for medication and ensuring that we move away from procurement of equipment and adopt a new policy of equipment leasing, there is a need for a rethink of some of the critical things perhaps beyond the level of the health insurance scheme.” The National Health Insurance Authority (NHIA) was established under the National Health Insurance Act 2003, Act 650, as a body corporate, with perpetual succession, an Official Seal, that may sue and be sued in its own name. As a body corporate, the Authority in the performance of its functions may acquire and hold movable and immovable property and may enter into a contract or any other transaction. A new law, Act 852 replaced ACT 650 in October 2012 to consolidate the NHIS, remove administrative bottlenecks, introduce transparency, reduce opportunities for corruption and gaming of the system, and make for more effective governance of the schemes The object of the Authority is to attain universal health insurance coverage in relation to persons resident in the country, persons not resident in the country but who are on a visit to this country and to provide access to healthcare services to the persons covered by the Scheme. NHIA is to be a model of a sustainable, progressive and equitable national health insurance scheme in Africa and beyond. The NHIA was created to provide financial risk protection against the cost of quality health care for all residents in Ghana and to delight our members and other stakeholders with an enthusiastic, motivated and empathetic professional staff who share the values of honesty and accountability in partnership with all stakeholders.