Be cautious on health insurance scheme
THE Government is coming up with a beautiful but an unpopular health insurance scheme. The scheme, bitterly opposed by employers and workers alike, is a complementary health care financing mechanism aimed at availing quality, accessible, equitable and aff
THE Government is coming up with a beautiful but an unpopular health insurance scheme. The scheme, bitterly opposed by employers and workers alike, is a complementary health care financing mechanism aimed at availing quality, accessible, equitable and affordable healthcare to all Ugandan citizens.
However, while the technocrats in the Ministry of Health have done all it takes to market the scheme, the debate in the press shows the employers and workers are not convinced of its benefits. This is mainly because the scheme initially targets those in formal employment who are already overburdened with a number of direct taxes like the 30% Pay As You Earn (PAYE), the 5% statutory contribution to the National Social Security Fund (NSSF) and the Local Government Tax. The health insurance scheme will see Ugandan employees suffer another 4% deduction of their income. Employers who already contribute 10% towards NSSF will add another 4% towards the health insurance scheme.
Secondly, the scheme is being opposed because Ugandans have lost confidence in Uganda’s public health care delivery system. That is why most Ugandans today prefer private health care providers, small as they may be, to Government hospitals that have the best trained health professionals and equipment.
In the wake of the economic down-turn across the globe, the Government should try as much as possible to avoid additional costs on the employers and employees now until the current global financial crisis is over. This week, the Uganda Bureau of Statistics reported that Uganda’s cost of production has gone up by 18.6%. The health insurance scheme will push this cost even higher, thereby making our products and services less competitive in the regional and global market.
The Government should put off the scheme and concentrate on improving efficiency so as to restore confidence in public health delivery system. The scheme should not be rushed if it is not be perceived as having a hidden agenda or another form of tax.
However, while the technocrats in the Ministry of Health have done all it takes to market the scheme, the debate in the press shows the employers and workers are not convinced of its benefits. This is mainly because the scheme initially targets those in formal employment who are already overburdened with a number of direct taxes like the 30% Pay As You Earn (PAYE), the 5% statutory contribution to the National Social Security Fund (NSSF) and the Local Government Tax. The health insurance scheme will see Ugandan employees suffer another 4% deduction of their income. Employers who already contribute 10% towards NSSF will add another 4% towards the health insurance scheme.
Secondly, the scheme is being opposed because Ugandans have lost confidence in Uganda’s public health care delivery system. That is why most Ugandans today prefer private health care providers, small as they may be, to Government hospitals that have the best trained health professionals and equipment.
In the wake of the economic down-turn across the globe, the Government should try as much as possible to avoid additional costs on the employers and employees now until the current global financial crisis is over. This week, the Uganda Bureau of Statistics reported that Uganda’s cost of production has gone up by 18.6%. The health insurance scheme will push this cost even higher, thereby making our products and services less competitive in the regional and global market.
The Government should put off the scheme and concentrate on improving efficiency so as to restore confidence in public health delivery system. The scheme should not be rushed if it is not be perceived as having a hidden agenda or another form of tax.