The Tribune

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net PLANS to increase National Insurance Board (NIB) contribution rates by one percentage point to 10.8 per cent will likely pose a challenge for many Bahamian businesses still seeking to rebound from the recession, the Bahamas Chamber of Commerce and Employers Confederation's (BCCEC) chairman has conceded. WHILE acknowledging the benefits of an expanded National Prescription Drug Plan, Winston Rolle said: "The additional 1 per cent is something that has been talked about for quite some time. That is intended to extend the pharmaceutical benefit to all working contributors. "I believe that it is to be a shared between employer and employee, similar to the last increment. The timing of it is perhaps the biggest challenge. We are still in recessionary times, and a number of businesses are still having challenges, so any kind of increment is going to have to be looked at very carefully. It's another tax by the Government, so that's why it may not be well received by some people." NIB's director, Algernon Cargill, speaking at the recent Bahamas Business Outlook Conference, reiterated the 1 per cent rate increase proposal. Mr Cargill said: "We have recommended to Government that the extended program be funded from new NIB contributions at an additional 1 per cent; that is by increasing National Insurance contributions from 9.8 per cent to 10.8 per cent of the insurable wage, and a small co-payment. "This phase requires major collaboration with private insurance companies. We are lobbying for reduced premiums or additional benefits from your private insurance." He added: "NIB will focus on co-ordinating benefits and claim reimbursements with the private insurance companies. The drug plan will assume the role of first payer for members with private coverage. We aim for the day when no Bahamian will have to choose between paying for food and rent and acquiring needed medication." Mr Cargill said the proposed 1 per cent contribution rate increase would be shared between employer and employee. According to Mr Cargill, in 2011 NIB's contribution income increased to approximately $190 million. Mr Cargill said the National Prescription Drug plan launched in 2010 now has a membership of more than 70,000 persons, and provides prescription drugs to almost 14,500 active beneficiaries.