The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE Ministry of Finance is considering removing Value Added Tax (VAT) from healthcare services and health insurance premiums, Bahamas Insurance Association (BIA) Chairman Emmanuel Komolafe said yesterday.

His statement came days after he attended a meeting with the National Health Insurance (NHI) secretariat where the permanent secretary for NHI, Peter Deveaux-Isaacs, reportedly said this is one of the things his secretariat has recommended that the government do.

Government officials could not be reached yesterday to respond to Mr Komolafe’s claim.

If true, however, it could result in a rare win for insurance industry stakeholders amid their negotiations with the government over how to best proceed with the introduction of NHI.

In presenting its plans to the government regarding how to provide universal healthcare services in the country, the BIA has said that “healthcare should not be penalised by taxation”.

“The BIA urges the removal of Value Added Tax on all medical services and medical insurance in the interest of making healthcare more accessible and affordable,” the BIA said in its NHI proposal to the government released earlier this fall.

The proposal also called for the government to scrap plans to introduce a public insurer and to establish a healthcare mandate for all Bahamians.

“Imposing VAT on essential medical services and insurance increases costs and inhibits people from seeking necessary care,” the BIA previously said.

Mr Komolafe told The Tribune yesterday: “This is consistent with our view during the VAT debate as reiterated in our proposal that healthcare and health insurance should be benefactors of any tax regime. It seems fair to state that they may (have) realised the contradiction in applying additional taxes to healthcare and health insurance while at the same time trying to increase access and make it more affordable. The Bahamas is one of about five jurisdictions in the world that applies VAT to insurance.”

Nonetheless, in a sign of the degree to which the government and the BIA continues to be at odds over NHI, Mr Komolafe said he was surprised to learn that the government intends to roll out its vital benefits package in nine to 12 months from the Prime Minister Perry Christie’s address to a Bahamas Christian Council (BCC) luncheon last week.

Reacting yesterday, Mr Komolafe expressed surprise and said stakeholders were informed last week that the government is still working to determine what the vital benefits package (VBP) will entail.

He said: “Sanigest (Internacional, the government consultants) had suggested that all the phases will be rolled out in 12 months. However, subsequently the new timetable for implementation had defined dates for registration and the primary care phases with no specific dates for the roll out of the VBP. That seems to have changed.

“Other jurisdictions have taken up to five years to strengthen their healthcare system as part of rolling out and prior to full implementation. The phased implementation should be structured in such a way that it allows for proper planning by stakeholders and results in minimal disruption or displacement.”

Mr Christie also told reporters Monday that NHI legislation should make its way to Parliament in about three months.

But earlier this month, Attorney General Allyson Maynard-Gibson told The Tribune the government was aiming to bring the new NHI bill to the House of Assembly in January 2016.

Regarding this, Mr Komolafe said: “We note the Prime Minister’s comments that there would either be a new legislation or the old legislation may be amended. We presume that the regulations will be presented simultaneously for the perusal of individuals and companies that will be impacted by them.

“It is hoped that there will be ample time for review by stakeholders and the public to ensure adequate feedback prior to enactment. The nature of the personal data that will be transferred and provided may also warrant amendments to the Data Protection (Privacy of Personal Information) Act and/or the involvement of the data protection commissioner.

“There is definitely a need for sufficient time for people to digest the proposed changes and provide their comments for consideration.”

The first phase of NHI will begin in January. It is still unclear how much the scheme will cost or how the government will fund the plan long-term.