PSGH demands payment of NHIS arrears

Pharmaceutical Society of Ghana (PSGH) has called on the National Health Insurance Authority (NHIA) to as soon as possible settle outstanding claims owed pharmacists in the country.

According to the society, service providers which included pharmacists have not being paid arrears covering eight to ten months on the average.

“The PSGH calls on the CEO of the NHIA to redeem his promise to service providers now. Service providers under the NIHS have suffered for far too long and this is having a serious negative impact on the pharmaceutical sector,” James Ohemeng Kyei, President of PSGH said.

He was speaking at a press conference on the delayed reimbursement of health service providers and recommendations for sustainability of the NHIS.

Mr Ohemeng Kyei said promises by authorities of the NHIA to redeem their indebtedness have failed, citing an example of the promise by the NHIA boss, Sylvester Mensah, on February 20 to pay all 2014 arrears to service providers by the close of March 2015.

He said if nothing is done about the development, the purpose of the establishment of the NHIA and the National Health Insurance Scheme (NHIS) would be defeated.

Mr Ohemeng Kyei said as a result of the delay in reimbursement by the NHIA, most pharmaceutical companies are unable to meet their financial obligations, forcing some of them to revert strictly to the cash-and-carry business.

“Pharmaceutical companies are defaulting in loan repayments to their bankers and some have had their assets and other collaterals seized by their banks,” he noted.

The PSGH President said importers of pharmaceutical products have also been subjected to exchange rate risk which is very unpredictable under the current economic condition.

These coupled with other factors, Pharm Ohemeng Kyei, said has led to the shortage of many essential medicines in the country since the supplies are done by private sector.

The society, however, gave certain recommendations they believe would help the collapsing NHIS to be sustained for the benefit of the people of Ghana.

They called for the NHIA, to until all arrears of providers covering 2014 and the first quarter of 2015 are paid in full, the NHIA should stop funding non-urgent and non-core activities and project.

“We recommend a direct and prompt transfer of the National Health Insurance Levy from the Ghana Revenue Authority (GRA) into the National Health Insurance Fund,” he said.

The PSGH also recommend the increase of the NHIL component from 2.5 percent to 3.5 percent within the 17.5 per cent Valued Added Tax (VAT).

The society also called for the creation of a platform for a dispassionate national stakeholder’s forum to discuss and find practical and sustainable solutions to the problems of the scheme.