TANZANIA—The government has unveiled prospective funding streams for the Universal Health Insurance Bill, which was unanimously approved by the National Assembly as part of the government’s efforts to achieve Universal Health Coverage (UHC).
The bill was first introduced in September 2022, but it was later recalled for further consideration because members of parliament were concerned about the lack of a clear system for financing the bills
The bill is intended to help all impoverished Tanzanians who could not afford to pay premiums to cover the expense of treating chronic diseases, including cancer, kidney and heart diseases, as well as emergency services like accident care.
Tanzania has over 15.8 million disadvantaged groups, equivalent to over 3.6 million households, according to the Population and Housing Census of 2022, with over 4 million people living in abject poverty.
While tabling the new revised UHC Bill in the National Assembly on Wednesday, Minister for Health Ms Ummy Mwalimu stated that all considerations and recommendations that had previously hampered the process of Bill endorsement have been thoroughly addressed.
She added that financing health expenses for the poor was one of the primary issues raised when the Universal Health Coverage Bill was submitted for the first reading in Parliament. She informed the legislature that they had found numerous sources of funding for the new bill.
Ms Mwalimu noted that the government has recommended the establishment of a dedicated fund to pay the cost of health insurance for the country’s most vulnerable groups. The additional funds will be used to support medical services for people suffering from chronic and life-threatening diseases, as well as emergency services.
According to her, certain procedures will be used to identify and register persons who do not have the financial means to pay for insurance, the group will be covered by the public health insurance plan.
She stated that they had an agreement with the minister of finance to set aside money from levies on carbonated drinks, liquor, cosmetic items, gaming tax, motor vehicle insurance costs, and electronic transactions levies to fund UHC expenses.
She noted that parliament will allocate a budget in addition to earnings from the insurance fund’s investment and assistance from other development partners to finance the bills
Furthermore, the government aims to abolish a clause that bans some public services for persons who have not enrolled in government health insurance systems.
The initial bill restricted access to services such as driving licenses, motor vehicle insurance, tax identification number (TIN), sim card registration, passport or visa, company license, student registration, and national ID.
Furthermore, every Tanzanian will be required to enrol in a health insurance program to ensure that people receive medical care without difficulty, even during difficult times. Those who fail to join any insurance scheme three years following the new law’s adoption will face a 10% annual contribution penalty.
Ummy’s health insurance plans will also include a Standard Benefit Package for their beneficiaries. The package also allows beneficiaries to get additional benefits that are not available in the basic package, ensuring that every citizen has access to the fundamental services provided by the Standard Benefit Package.
In order to achieve the goal of universal health coverage for all while acknowledging the essential investment made through the Community Health Fund (CHF), the Bill proposes that the CHF be repealed and replaced by the introduction of a Community Health Insurance Package (CHIP).
In terms of dependents, the Bill specifies six beneficiaries: the contributor, spouse, and four children (biological, adopted, and stepchildren).
It also mandates employers in both the public and private sectors to enrol new employees within 30 days of the contract’s start date.
Concerning contributions, the Bill has revised the required clause so that employers in the public sector would contribute 6% and companies in the private sector who have chosen to register their employees in the public health insurance plan will contribute 6%.
Similarly, Ms Mwalimu stated that the Bill eliminated all treatment exemptions and the issue of barring patients or bodies from being discharged due to unpaid individual medical costs.
Concerning the Toto Afya Card, the Minister stated that the Bill does not include the package, noting that 99 per cent of the children registered there were unwell.
With the passing of the UHC Bill, the government hopes to expand healthcare access even for the poor who cannot afford premiums.
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