NHIA pushes for inclusion of telecom tax in Finance Act

The National Health Insurance Authority (NHIA) says it is currently advocating the inclusion of telecommunication tax in the finance act to enable it pool the much- needed resources to provide health insurance for 83 million indigent Nigerians.

The new National Health Insurance Act (NHIA) had previously proposed a telecommunication tax of one kobo per second for the vulnerable group fund to cater for the poor as contained in the act, but was removed before it was finally signed into law by President Muhammadu Buhari.

Mohammed Sambo, director-general, NHIA, who spoke at a news conference in Abuja, Thursday, said opportunity still exists for the inclusion of telecommunication tax in the finance act and that the NHIA is currently in talks with relevant stakeholders to that effect.

Sambo noted that the telecommunication tax will not incur any burden on individuals or households as speculated. According to him, “Studies show that people spend more funds on telecommunications than they spend on the food they eat. For every call you make, we will take one kobo per second and keep it for you so that we can aggregate so much funds to cover for the poor, which cumulatively will run into billions. That cannot affect the household; you won’t even feel it.

The Senate put it in the bill but it was removed: that does not mean it won’t be revisited. If NHIS is desirous of that, they can only advocate for it to be included in the financial act, and if agreed, it will be put there.”

He further informed that in addition to the telecom tax, the NHIA is also making a case to ensure that revenue from the Sugar-Sweetened Beverages (SSB) tax be channelled into health insurance rather than other sectors such as road construction.

Read also: HFN calls for equitable distribution of pro-health taxes

On how the NHIA will determine the vulnerable groups to be catered for, the DG who, however, acknowledged that it it is often difficult to determine income of residents when carrying out community diagnosis, said the authority will use the national social register developed by the office of the vice president and currently at the ministry of humanitarian affairs.

According to him, the register has thoroughly gone through all the states and has determined people that are poor.

“We are planning to utilise that register but because the programme will be implemented at the state level, we will ask the states to ensure that at the point of capturing people into NHIA, the data is validated for synergy,” he added.

Speaking further, the DG noted that the health insurance act has redefined the role of health maintenance organisations (HMOs). Sambo explained that under the new law, the NHIA and state health insurance agencies will be driving the provision of basic healthcare care package whereas HMOs will be providing health insurance beyond basic healthcare which includes supplementary packages.

This, according to him, means that all funds for basic health care packages will be paid directly to health facilities and not through HMOs. He said, “The HMO was controlling everything before, all monies will go to HMO and HMO will pay; NHIS will take that responsibility. But now funds will go directly from NHIA to the health care facilities, not through HMO for the basic health care services.

“But if a company or a big organisation wants a comprehensive package, NHIA will take money for the provision of the comprehensive package, and for the supplementary package, NHIA will send money to the HMO of choice of that organisation.”

Speaking further on the role of the HMOs, Sambo said the act recognises the existence of private health insurance, hence, HMOs can drive it and can also be registered as third-party administrators.

“But the provision of basic health fund and minimum health packages is for NHIA and state health insurance agencies,” he stressed, adding that it also reduces the risk of capitalisation for HMOs.

The NHIA boss reiterated that the new role of HMOs is in line with the National Health Insurance Act saying, “we will implement the act as it is. We know it will create disruption and that’s why we have to manage it in a manner that will not bring any discomfort.”

On how the authority intends to ensure that all Nigerians obtain health insurance as the law has made it compulsory, Sambo said the NHIA is currently consulting with stakeholders across every sector, including private, public, and the informal sectors. He hinted that these consultations may result in the creation of policies and strategies to ensure compliance.

For the informal sector, he said parents may be mandated to present evidence of insurance before registering their children in schools and hospitals. He also said that the NHIA is in talks with the Nigeria Employers’ Consultative Association (NECA), and the public sector.