Insurance- will it help our ailing system?
Aug 03, 2008
THE Government has proposed a health insurance scheme that will create funds to treat the sick. The <i>New Vision</i> will investigate the issues behind the scheme in a series of three articles.
THE Government has proposed a health insurance scheme that will create funds to treat the sick. The New Vision will investigate the issues behind the scheme in a series of three articles. Today, Conan Businge explores whether the Government will get the funds to maintain the scheme and if the plan will increase the resources for health care.
WHEN Patrick Tusiime laughs, his face crinkles into a grin and his shoulders shake gently. But at times he is in agony, as he recalls the terrible moment, years ago, when he was involved in a tragic accident. This primary school teacher had his arms amputated because he could not afford the care.
Like Tusiime, thousands of Ugandans suffer disability or death because they cannot afford medical care. The Government has responded by proposing health insurance.
The concept is simple: if everyone contributes something, there will be enough to cover the medical costs of the sick. Health care providers will also improve their services, for fear of losing out to competitors.
However, in reality, there are many obstacles to overcome. Access to health services is one of the challenges faced especially by the 8.6 million people living below the poverty line. More than 75% of these people die due to preventable diseases, according to the health ministry.
One woman dies every hour due to complications of childbirth. About 31.1% live in abject poverty, so they cannot afford medical costs, which are determined by market prices, consultation fees and drug costs.
By covering these costs, health insurance will establish a uniform standard of services.
However, officials say the scheme will reach the last man in the village 15 years from its commencement. Initially, 545,000 out of the 10.9 million workers will kick-start the scheme.
They will surrender 4% of their gross monthly salary, and their employers another 4%.
Before this can happen, there are infrastructural issues to deal with.
There are many health care centres, but these are understaffed and lack medicine.
There are 104 hospitals and 250 health centres but only one doctor for every 20,000 people. “The lack of workers is one of the biggest challenges,†says health minister Dr. Stephen Mallinga.
HIV/AIDS adds to the burden – 6.4% of the adult population is infected with HIV while malaria is the leading cause of illness.
However, since health care is heavily financed by donors, the question is, will the scheme be sustainable? Besides, Uganda’s annual GDP is $31.47b, but public health expenditure per capita is $10 compared to the World Health organisation’s recommendation of $40 per capita.
Will insurance help?
The senior health planner in the health ministry, Dr. Robert Basaza, said: “The Government will also contribute to the scheme, to overcome any shortfall if donors cut their support.â€
When established, the insurance will have all Ugandans paying to a common fund so that there is enough money to care for the sick.
Such insurance covers all or part of the costs of treating the disease.
The principal contributor in a family will be covered together with their spouse and four other dependents, according to a health ministry economist, Emily Nyanzi.
Private health providers, including commercial insurers, will be accredited to join the insurance scheme.
“The law is going to spell out what kind of services the insured people will get. But it will cover only basic diseases,†Nduhura explains. “We would not, for instance, cater for people bleaching their skins.
Despite opposition from stakeholders, the Government is going ahead with the scheme. The cabinet has approved the National Hospital Insurance Fund that will make it compulsory for all civil servants to pay health insurance to the fund.
The public servants will be brought into the system first, followed by formal private sector workers. All those in the informal sector interested in joining, will pay 8% of their monthly earnings, equal to combined personal and would-be employers’ contribution.
However, it will be a matter of time before Ugandans know how much value this scheme will add to their lives.
Watch out for the second part of this article tomorrow
WHEN Patrick Tusiime laughs, his face crinkles into a grin and his shoulders shake gently. But at times he is in agony, as he recalls the terrible moment, years ago, when he was involved in a tragic accident. This primary school teacher had his arms amputated because he could not afford the care.
Like Tusiime, thousands of Ugandans suffer disability or death because they cannot afford medical care. The Government has responded by proposing health insurance.
The concept is simple: if everyone contributes something, there will be enough to cover the medical costs of the sick. Health care providers will also improve their services, for fear of losing out to competitors.
However, in reality, there are many obstacles to overcome. Access to health services is one of the challenges faced especially by the 8.6 million people living below the poverty line. More than 75% of these people die due to preventable diseases, according to the health ministry.
One woman dies every hour due to complications of childbirth. About 31.1% live in abject poverty, so they cannot afford medical costs, which are determined by market prices, consultation fees and drug costs.
By covering these costs, health insurance will establish a uniform standard of services.
However, officials say the scheme will reach the last man in the village 15 years from its commencement. Initially, 545,000 out of the 10.9 million workers will kick-start the scheme.
They will surrender 4% of their gross monthly salary, and their employers another 4%.
Before this can happen, there are infrastructural issues to deal with.
There are many health care centres, but these are understaffed and lack medicine.
There are 104 hospitals and 250 health centres but only one doctor for every 20,000 people. “The lack of workers is one of the biggest challenges,†says health minister Dr. Stephen Mallinga.
HIV/AIDS adds to the burden – 6.4% of the adult population is infected with HIV while malaria is the leading cause of illness.
However, since health care is heavily financed by donors, the question is, will the scheme be sustainable? Besides, Uganda’s annual GDP is $31.47b, but public health expenditure per capita is $10 compared to the World Health organisation’s recommendation of $40 per capita.
Will insurance help?
The senior health planner in the health ministry, Dr. Robert Basaza, said: “The Government will also contribute to the scheme, to overcome any shortfall if donors cut their support.â€
When established, the insurance will have all Ugandans paying to a common fund so that there is enough money to care for the sick.
Such insurance covers all or part of the costs of treating the disease.
The principal contributor in a family will be covered together with their spouse and four other dependents, according to a health ministry economist, Emily Nyanzi.
Private health providers, including commercial insurers, will be accredited to join the insurance scheme.
“The law is going to spell out what kind of services the insured people will get. But it will cover only basic diseases,†Nduhura explains. “We would not, for instance, cater for people bleaching their skins.
Despite opposition from stakeholders, the Government is going ahead with the scheme. The cabinet has approved the National Hospital Insurance Fund that will make it compulsory for all civil servants to pay health insurance to the fund.
The public servants will be brought into the system first, followed by formal private sector workers. All those in the informal sector interested in joining, will pay 8% of their monthly earnings, equal to combined personal and would-be employers’ contribution.
However, it will be a matter of time before Ugandans know how much value this scheme will add to their lives.
Watch out for the second part of this article tomorrow