PUBLIC FINANCING FOR UHC: TOWARDS IMPLEMENTATION Perspectives on - - PowerPoint PPT Presentation

public financing for uhc towards implementation
SMART_READER_LITE
LIVE PREVIEW

PUBLIC FINANCING FOR UHC: TOWARDS IMPLEMENTATION Perspectives on - - PowerPoint PPT Presentation

PUBLIC FINANCING FOR UHC: TOWARDS IMPLEMENTATION Perspectives on earmarking as a health financing instrument? Dr Aboubacar INOUA, MD, MPH, HEC WCO GABON 1 | CNAMGS experience in earmarking 2 | SESSION OUTLINE Context Objectives


slide-1
SLIDE 1

1 |

PUBLIC FINANCING FOR UHC: TOWARDS IMPLEMENTATION

Perspectives on earmarking as a health financing instrument?

Dr Aboubacar INOUA, MD, MPH, HEC WCO GABON

slide-2
SLIDE 2

2 |

CNAMGS experience in earmarking

slide-3
SLIDE 3

3 |

Context Objectives Choice & creation of the « Redevance Obligatoire l’Assurance Maladie » (ROAM) Impacts & limits of the ROAM Creation of the “Contribution Spéciale de Solidarité” Bottlenecks Conclusion

SESSION OUTLINE

slide-4
SLIDE 4

4 |

CONTEXT

30% of the population living below the poverty line; Bankruptcy of the insurance system designed to poor people; 20% of the population benefits from health insurance; General Government Health Expenditure : 7% of GGE; Out Of Pocket Expenditure : 47% of DTS; DTS: 3% of GDP ; Low performance of the health system; Low health indicators : RMM, TMM5, HIV/AIDS…

slide-5
SLIDE 5

5 |

Objectives

 Provide health insurance to the poor people:

 Ensure financial accessibility to quality care for the population, especially the poorest;  Reduce Out Of Pocket Expenditure.

 Identify additional income and earmarking to the health of the poor;  Ensure equity in financial contributions;  Improve the management of financial resources in the health sector.

slide-6
SLIDE 6

6 |

Choice & creation of the ROAM (1)

Criteria for choosing taxes

Sufficient resources EQUITY Low impact on the consumption EFFICIENCY STABILITY & PREDICTABILITY

slide-7
SLIDE 7

7 |

Choice & creation of the ROAM (2)

Taxe under review

  • Tobacco & Alchool
  • Airline tickets
  • Hydrocarbons and

mining

  • Mobile phones
  • Financial

transactions

Negociations

  • Employer hostility
  • Mistrust from unions
  • Resistance from

private insurers

  • Pressure from

unions fighting against poverty

Withheld taxes

Tax on mobile phones

( Expanding Sectors, luxury products)

Tax on financial transactions (country

with strong immigration)

slide-8
SLIDE 8

8 |

Choice & creation of the ROAM (3)

 Act n°0022/PR/2007 of 21 August 2007, establishment of the health insurance ;  ROAM indirect tax is composed of:

 Tax of 10% of turnover on mobile phone companies;  Tax of 1.5% on remittances abroad (outside the CEMAC zone) and foreign exchange transactions..

 Liability, base tax and rates set by the Finance Act;  ROAM is deductable from Personal Income Tax and Corporate Tax.

slide-9
SLIDE 9

9 |

Impact of the ROAM

 Extension of health coverage to the poor people (700 000 people);  Increase on DTS;  Increased GGEH ;  Decline of Out Of Pocket Expenditure;  Fungibility of funds or economic crisis ?

50,000,000,000 100,000,000,000 150,000,000,000 200,000,000,000 250,000,000,000 300,000,000,000 350,000,000,000

2010 2011 2012 2013 2014 2015 Dépenses Totales de Santé (DTS) Régimes de l'administration publique Régimes contributifs

  • bligatoires

ROAM

slide-10
SLIDE 10

10 |

Limits of the ROAM

R² = 0.88 R² = 0.8462 5 10 15 20 25 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 BILLION

ROAM et TTF Total dépenses

  • Log. (ROAM et TTF)

Linear (Total dépenses)

slide-11
SLIDE 11

11 |

Special Contribution for Solidarity (CSS)

 Remove of the tax on mobile telephony in 2017 :

 Economic crisis and employer pressure;  Stagnation of income from ROAM;  Reduced profit margin made by mobile phone companies..

 CSS: 1% of the tax free amount applicable to all invoices for goods and services provided countrywide;  Tax on consumption in line with VAT;  Increase ROAM's income to meet the health care costs of the poor.

slide-12
SLIDE 12

12 |

Bottlenecks

Resistance of targeted economic operators; Heavy administrative burden for tax collection procedures; Involvement of several administrations in the tax management; Non-involvement of CNAMGS in the tax settlement; Delays, by the public treasury, to reverse the revenue; Absence of control over the frequency of payments; Absence of the pooling with other ressources.

slide-13
SLIDE 13

13 |

Conclusion

Political leadership ; Strong partnership between MOF and MOH Tax base financing (ROAM) is a political instrument ; 90% of the poor covered ; Strong health financing instrument; Increase DTS, GGHE ; Reduction of OOP (20%); Increase providers resources;

Improved tax collection; Largest pooling of resources; Control of health insurance expenditure; Strategic purchasing; Inefficiency of expenditure

Accountability:

National Health Account (NHA) Public Expenditure Review (PER) Quality of service? People satisfaction?