Minister of Health Dr. Perry Gomez.
By KHRISNA VIRGIL
Tribune Staff Reporter
kvirgil@tribunemedia.net
THE implementation of National Health Insurance, which is slated for a January 2016 first phase roll-out, “will likely” be financed through a new tax on Bahamians, according to Health minister Dr Perry Gomez.
Dr Gomez did not reveal the tax rate now under consideration; however, The Tribune understands that the new scheme will be facilitated by a one per cent payroll tax.
The revelation came after Fort Charlotte MP Dr Andre Rollins interrupted Dr Gomez during his contribution to the 2014/2015 Mid-Year Budget debate, and questioned whether Bahamians would see a new tax to facilitate the initiative.
Dr Gomez said: “We have to pay for it and as you may recall in the Blue Ribbon Commission report that back then it was supposed to be paid for with a tax that was equitable because the driving force for NHI is the creation of equity.
“And so we had proposed a 5.4 per cent tax on salary and it is up to the team that is in place to come up with what we are going to propose this time that has not been determined.”
Dr Gomez told parliamentarians yesterday that NHI plans were well underway as Sanigest Internacional and the Ministry of Health executed a consultancy agreement. The agreement, signed last Monday, is to provide technical assistance for the implementation of the insurance scheme.
The Blue Ribbon Commission was formed under the previous Christie administration to lay the groundwork for NHI. The plans were abandoned after the PLP’s loss in the 2007 general elections.
At the time, the total cost and who would finance NHI, were among the key concerns raised when the insurance scheme was first unveiled. The initial cost was pegged at $235 million, but the private sector pointed out at the time that the government’s own Blue Ribbon Commission report had said total healthcare spending in the Bahamas was some $343 million in 2001 – some six years earlier.
Dr Gomez said during the House session that while the government’s decision to go ahead with NHI was ambitious, it will become a reality in 10 months.
“Mr Speaker the journey to implementation of Universal health Care in The Bahamas has started in earnest and NHI will be realised in January, 2016.
“Yes, it is an ambitious mission, but the Ministry of Health, the Ministry of Labour and National Insurance along with our partners in the private sector will accomplish this honourable goal.
“Things are happening quickly as with the input of the experience global healthcare consultants Sanigest Internacional and the ever present available consultations within the Pan American Health Organisation in country representatives.
“The Bahamas is fixed to be well armed for this formidable journey.
“Mr Speaker this has been long in the making but with this diverse championship team the population can afford to have great expectations because this grouping has the ability to deliver at the highest standard and quality.”
The suggestion of a new tax comes at a time when Bahamians are still adjusting to the controversial Value Added Tax, which was implemented on January 1 at a rate of 7.5 per cent on goods and services.
Last week, Dr Rollins said he would not support plans for NHI because it could jeopardise thousands of jobs.
He said NHI should not be considered until a national lottery is implemented.
The NHI scheme will remove the need for money at the point of care, according to officials.
Although a National Health Insurance Act was passed by the government in 2006, it has only been carried out partially through the Prescription Drug Plan, which began in 2010.
Comments
Honestman 9 years, 10 months ago
“And so we had proposed a 5.4 per cent tax on salary and it is up to the team that is in place to come up with what we are going to propose this time that has not been determined.”
Well it better not be anything like a 5.4 per cent tax on salaries otherwise the people will revolt! Why doesn't this government get it? I would like a new Porsche but I can't afford it and so I will stick with what I have for now. A fully comprehensive NHI scheme would be great, for sure, but the working class (who are going to have to pay for it) simply can't afford it at this time. Rollins is on the right track when he says that a National Lottery should be used to fund NHI. That would be much more sensible. A Tax on payroll at this time will be the death knell for this economy but the PLP is too stupid to understand that.
B_I_D___ 9 years, 10 months ago
Ahhhh yes...more taxes...so now there IS going to be a payroll tax to cover the NHI...and more than likely VAT going up to 15%...GO GO GO!!
Honestman 9 years, 10 months ago
How much damage can a political party do in one five year term? Hold on, you are about to find out!
Economist 9 years, 10 months ago
Dr. Gomez can't be bothered to make everything more efficient, just get us poor Bahamians to pay more tax.
He needs to address the inefficiencies. What happened to the report?
What has he done? NOTHING! Just screw us Bahamians some more.
GrassRoot 9 years, 10 months ago
well so much for insiders: under his capable lead, more than 50% of HIV positive Bahamians have not received their allocated proper medication. Medication that has been paid for by the Clinton Foundation. Antibiotics got stolen somewhere between the Airport and Delivery (and probably sold), the weakest of the weak have been taken advantage of.
proudloudandfnm 9 years, 10 months ago
What is friggin wrong with the PLP!?!?!?
Another tax!?!?!? Bahamians better friggin wake up. Time for a revolt hey?
Sickened 9 years, 10 months ago
The sooner the revolution starts the better off we will be. The last 15 years of governance has been a disaster. the country has gone backwards and we are doomed.
Honestman 9 years, 10 months ago
More tax to pay for NHI = more secret medical contracts, more kick backs, more missing drugs...... need I go on?
asiseeit 9 years, 10 months ago
These assholes are playing with fire. They want to tax the Bahamian people into the dark ages yet they want to spend, spend, spend. Government has no idea how close to civil unrest they really are. This will cause people to go over the top. We pay dearly for nothing now, you want us to pay more for probably even less? Somebody needs their head checked and it is NOT the taxpayer!
JohnDoes 9 years, 10 months ago
Soo, 7.5% tax on services and goods, 5.4% tax on salary for NHI along with salary deductions for NIB but no increase in salaries and no increase in employment. Sounds like the middle class is getting ousted, and there will only be the Rich and the Poor. Soon the natives themselves will be driven out of the Capital.
Publius 9 years, 10 months ago
The only thing I can do at this point is curse and threaten persons, so I'm out.
Sickened 9 years, 10 months ago
I hear you. So tempted to stand outside the house and bitch slap each and every MP (Perry gets two slaps 'cause he's the 'leader') and tell them 'get back inside until you do something positive for the country'.
Well_mudda_take_sic 9 years, 10 months ago
Yet another regressive tax to be imposed on those who can least afford it. Whether it be an increase in National Insurance (aka payroll tax) or the introduction of VAT, the intent of the Christie led PLP government is clear: STICK IT TO THOSE WHO CAN LEAST AFFORD IT NO MATTER HOW MUCH THEY MAY SQUIRM AND COMPLAIN ABOUT IT!! Meanwhile, Perry Christie and his political friends and business cronies (like Craig Flowers and Franky Wilson aka Snake) live it up and laugh at the inability of middle and lower class Bahamians to do anything but vote for the PLP or FNM come election time. Agents of the U.S. government like the IMF, World Bank and WTO are delighted at the destruction of the wealth of the average Bahamian who is now mired in debt as this plays well to the creation of public-private sector partnerships (PPPs) that allow foreign interests to rob us of our public sector resources, like utility companies, etc. The greater the foreign ownership of our utility enterprises and natural resources, the greater the indebtedness of the average Bahamian and the greater the pressure on maintaining our current exchange control regime. Significant sums of money have exchanged hands under the table in foreign jurisdictions to pay-off the few Bahamians who have been instrumental in bringing our country to the dire point that it finds itself in today. LOWER AND MIDDLE CLASS BAHAMIANS MUST START SEEING THE BIG PICTURE IN ORDER TO HOLD THOSE ACCOUNTABLE FOR ALLOWING THE DESTRUCTION OF YOUR STANDARD OF LIVING AND QUALITY (WAY) OF LIFE!! WAKE-UP YOU POOR DUMB DOWN-TRODDEN BAHAMIANS LOADED WITH SELF-PITY - IT'S HIGH TIME YOU TAKE YOUR COUNTRY BACK FROM THE EVIL FORCES AT PLAY!!!!
DonAnthony 9 years, 10 months ago
So if a person is unemployed, and therefore earns no salary that can be taxed, will they be covered under NHI?
Honestman 9 years, 10 months ago
YES!
TalRussell 9 years, 10 months ago
Comrades the potential tragedy in the opposition to the proposed National Health Insurance (NHI) is, the government may be forced into betraying the health needs of the people. Minister Dr. Perry is only helping to stir the pot, by his labeling health coverage as a "new tax."
GrassRoot 9 years, 10 months ago
Tal, can you make a photoshop with PGC as Darth Vader?
TalRussell 9 years, 10 months ago
Comrade if I never stooped to that level with Papa Hubert while he sat as our nation's PM, why would I now do such a disrespectful thing to PM Christie. I happen respect the office of PM, regardless of its occupant.
John 9 years, 10 months ago
If the government continues to pile tax upon tax on the backs of poor working Bahamians it will mean that the poor will always be poor as they will never have enough funds to dig themselves out of the financial ditch their own government has dug for them. It will also mean that those living below the poverty line and are not now making ends meet will have an even greater battle for survival and more of them will become disillusioned and may drop out of society and not seek employment. These are the very ones the scheme is proposed to assist. This government is growing to fast in a very lean economy. It has become more than a gussimae. While NHI may be a good thing on the face of it we all know that corruption and government inefficiencies will make it too expensive. The full brunt of VAT has not yet been experienced in the economy and if there is no growth over the next 6-12 months governments VAT revenue will decline and so will employment. Another 5.4% withdrawal of salaries out will kill the economy dead.
Islandgirl 9 years, 10 months ago
Why don't you people just remove the duty off healthy foods to make them affordable for everyone, thus encouraging a healthier nation and less occurrences of the major non-communicable diseases that are killing this country? Knowing full well the extreme hardship such a scheme will put on us all, these buffoons continue to bungle onward with one jacked up plan after the next. Please quit. Ring the damn election bell now cause I can't take no more of this! You are destroying the friggin country. Can't you people see this? Or is it that the gravy train is so rich for you few that the rest of us don't matter? I don't want or need you involved in my health care. You all do a piss poor job now and then want to create a monster like this. Just stop. Serious unrest is going to happen in this country.
TalRussell 9 years, 10 months ago
Comrade Sister are you suggesting an uprising from the well -to-do's - cuz to hold a mass uprising it will require a turnout by the poor people? Good luck on that one.
John 9 years, 10 months ago
When are Bahamians going to start benefitting from the natural resources of this country as opposed to being taxed out of existence?
GrassRoot 9 years, 10 months ago
seems to me the Government sees your wallet as a natural resource for all kind of things.
duppyVAT 9 years, 10 months ago
Will this new tax be added to the NIB tax now?????????? NIB cover your retirement assistance, short term intervention, prescription medicine and now healthcare ......... thats another 7.5% of your salary. VAT + NIB/HI = 15% of our salaries. That is what its going to be in 2016. Then we will see an education tax, national real property tax etc. So, by 2020, we will pay about 20-22% of our salaries to the government + hidden taxes = 30%. Thats First World standard rates??????? Most European countries pay 40-50% of income as taxes
Economist 9 years, 10 months ago
Most, if not all European countries sow there citizens where the money is spent. They have Freedom of Information legislation and are accountable to the people.
Economist 9 years, 10 months ago
11% of my salary to National Insurance + 5.4% to National Health Insurance + 7.5% Vat on everything I buy.
Government just took 24% of my salary and I have not even paid Customs Duty. All TAX all to Government and I haven't bought anything for me yet.
So get ready to spend your first four months, of each year, working just to pay tax and Customs Duty.
ThisIsOurs 9 years, 10 months ago
The funniest thing...not really funny, was when he mentioned "it's 5.4% so there will be equity". Doesn't he understand that a poor person paying 5.4% of $500 hurts their pocket WAAAAAY more than a rich person paying 5.4% of 1million? Where is the equity in that??
duppyVAT 9 years, 10 months ago
That is the big problem with our present OPPRESSIVE tax regime!!!!!!!! And it is going to get worse in the next FIVE years!!!!!!!!!!! Because more taxes are going to be necessary if we dont curb the civil service pension drain, the kickbacks culture and the poor lending rates that are forced upon our government by our Canadian banks of choice
GrassRoot 9 years, 10 months ago
well here is the thing, I am happy to pay the 5.4% if I can get my Xanax, valium, morphium for free. good deal, keeps me happy in dark days.
themessenger 9 years, 10 months ago
As Margaret Thatcher once said about socialism in Britain, but could just as easily be describing our socialist "party of the people" PLP's destructive fiscal policies "Sooner or later you run out of other peoples money to spend." That point has been reached, the well is dry, the bucket has a hole and the future of the middle class in the country, or whats left of it, totters on the brink. These idiots can't understand that you can't get blood from a stone or from people that are already bled white.
TalRussell 9 years, 10 months ago
Comrades what I'd like to see is a bill brought to the floor of House by the government and passed without opposition, for allowing those who have lost their paychecks to be allowed the option to continue paying into the old company's employees group insurance plan for up to 12 months, or until they have been enrolled into a new employer's group insurance plan. Consideration should also be given for including employee group pension plans and other group benefits.
ThisIsOurs 9 years, 10 months ago
Amen to that
themessenger 9 years, 10 months ago
Not a bad idea comrade, unfortunately participation in the Guvment NHI will be mandatory therefore company group policies will probably become extinct along with the middle class who now contribute to them.
TalRussell 9 years, 10 months ago
Comrade in countries where they have both government and private group payroll plans, not only do they co-exist well tougher for the greater benefit of the both the employer and employee but the government's insurance can help in maintaining the employer and employees private insurance contribution of premiums to an affordable level. But what will neither benefit employers or employees, is for any employer to ever be allowed to revert back to the; we don't give a good damn about the welfare of our workers - colonial days.
Economist 9 years, 10 months ago
TalRussell you are right on the money. This was suggested. I guess it would require the dreaded "Transparency", and , well, we can't have that can we?
But it works well in other places.
GrassRoot 9 years, 10 months ago
I heard that if you can not pay the tax, you can convert your status from Free Bahamian to the status of an Indentured servant. you will be freed from any taxes immediately, you will be fed, housed and dressed at no charge. Government may assign you to work in the Chinese quarries, or if properly educated as a butler/servant in one of the Bahamian political elite's finest households.
John 9 years, 10 months ago
Can you tell me who is really running this country the IMF, the World Bank, who? The two main planks in the PLP's campaign platform and charter for governance was increase in employment and reduction in crime. Unemployment and crime has increased under this government and they have done nothing substantative to ease the economic hardship of Bahamians. Wouldn't it be a wiser thing to get the economy moving and getting crime down before introducing new taxes?
GrassRoot 9 years, 10 months ago
yep its like a kid that mixes up right and left, ey? Lets ask Sir Bradley Roberts, I am sure he has someone in mind to blame
GrassRoot 9 years, 10 months ago
Speaking of which, I like the "January 2016" part. who about the number's boys to pay for the NHI for all of us?
TalRussell 9 years, 10 months ago
Some thoughts coming into Comrade minister of health's head may have been best left, not flowing down into and out of his ministerial mouth onto the floor of the House. Hopefully, after the backlash from the public over his poor use of words and now after his having had time to reflect over what he said, I think the next time the minister stands in the honourable House to justify the proposed National Health Insurance bill, he will say:
"Unfortunately, because of consecutive governments from both political strips seated in this Honourable House, having for so long neglecting to provide all our citizens - regardless of their income levels - an affordable health insurance plan, which will also allow for family members to seek out timely preventive medical care from their family doctors.
Not to make such an insurance plan available to all citizens can only further increase the probability of even more serious illnesses, or even unnecessary deaths from not being in a financial position to seek out and to receive timely medical care and treatment.
My honourable Comrade colleagues on this and opposite side of the House, this is just but one of the deficiencies of our health care system, which my government as the representative government of all the people, proposes to address under the National Health Insurance bill."
To maintain a healthy Bahamaland, is to do what is right and decent for all citizens. As your minister of health, I have heard you and I wish to apologize for my poor choice of words. I now can appreciate why it has offended many.
TheMadHatter 9 years, 10 months ago
All this means is that the people who are going to get the benefits are NOT the ones who pay - just like it is now. When you go to PMH or any clinic who do you see filling up the seats? You think their bosses is declare them and pay national insurance? Of course not - so there won't be any 1% deduction from them - but they will get all the doctors and all the medicine - just like now - except even more.
TheMadHatter
duppyVAT 9 years, 10 months ago
Yep, I agree ................... the number paying will shrink as poverty and the number of dependents rise ................... how will we sustain a plan that is anticipated to begin at over $300 million per year in Phase 1...... what will it be by Phases 2 and 3???????? .........$700 Million!!!!!!!!!!!!
Jack 9 years, 10 months ago
There will be no revolt. A handful of people in this country care, the rest will just moan a lot and then roll over and let the government do what they want with their anuses.
ThisIsOurs 9 years, 10 months ago
Sadly I already see where this is headed. We will make noise, the entitled ones will ride the wave of the noise, then tell us, we've talked about this enough, there's nothing else to say, it's going to happen, we have to make the most of it. They may raise low-income salaries 2% right before implementation to pull the wool over their support base in Farm Road, Bain Town and other low-income areas. After implementation some agency will come out with the "Oh-Oh Report" titled "Inflation is Rising". Then Michael Halkitis will give a speech on their plan to tackle inflation. THEN we'll have carnival in February.
It's been their modus operandi for the past two years. It is amazing that they bring this up for debate after gambling AND carnival then tell us if they don't do this we'll die. So... Gambling was more important than death?
Emac 9 years, 10 months ago
:-)
professionalbahamian 9 years, 10 months ago
Bad idea!
What happened to FOI and fiscal responsibility? Stupidity!
Remember socialism works only until the country runs out of money! Oops too late lets line things up to get into everyone's pocket and not reduce spending!!!!
Why not put a solid effort into the education system so the youth come out of school as productive citizens!
Oh yeah what would that take... ? Technology implementation and effort!
HealthyBahamas 9 years, 10 months ago
Every day more and more of our people losing their health insurance coverage. Premiums rising so fast that hardly any regular bahamian can pay their policies which are often more than the mortgage! I hear that universal health coverage is going to offer us affordable access to care in the private sector and top up my benefits with private health insurance.
TalRussell 9 years, 10 months ago
Comrade K4C keeps harping how it will cost the Ontario, Canada provincial government $50 billion to provide healthcare services to Ontarians, while ignoring that despite the complexities of delivering the healthcare they do year after year, it is still the envy of the world.
If there is one thing no Ontarian would ever give up, it is their OHIP coverage.
K4C also talks about premiums being paid through annual tax filings but fails to acknowledge that the ONLY qualification to start receiving OHOP benefits is that you be a resident in Ontario for a minimum of 3 months, with or without a job or income to pay taxes on.
Yes, it has its faults but it still works pretty damn well in providing pretty damn good healthcare for All residents of Ontario.
It would be smart if our government were to review OHIP.
TalRussell 9 years, 10 months ago
Precisely so, My Dear Comrade K4C. Before you know it, I will have you enrolled not only in OHIP but also in my Comrade-in--training program.
themessenger 9 years, 10 months ago
Does this person have any special talents other than interchanging their potty mouth with their nether orifice???
ispeakthetruth 9 years, 10 months ago
This is simply a bad idea and the start of something worse. They should forget it! The last thing the Bahamas needs is a convoluted tax structure like the US that encourages poverty, oppresses the middle class and provides loopholes for the rich to avoid paying their fair share. And this is exactly where this is headed. Our politicians need to think outside of the box and stop trying to imitate the US where the salaries are higher even with all the taxes, and the cost of living (for most states) is less.
Why not add a mandatory medical fee for visitors? Each of the millions of tourist that come into the country should pay a ten or twenty dollar fee, in the event they are hospitalized or need medical care...most will not utilize it, but the cost is so low many will not complain. Why not add a similar fee for school aged and college kids for incidents that may occur at school? Ten dollars per semester, again many won't utilize. Why not deduct a reasonable five or ten dollars from every paycheck? Add a dedicated one percent to VAT for healthcare? I am not sure if these ideas are doable, but taxing the already overtaxed Bahamian makes no sense.
HealthyBahamas 9 years, 10 months ago
truth i think you are onto something there. there were some earlier proposals to put a fee o cruise ship passengers to help fund NHI. that would be more than $50 million that wouldn't have to come from Bahamians. The VAT idea was also proposed as an option in 2007 so maybe that can be revised.
TalRussell 9 years, 10 months ago
Comrade thought Canada was focusing on hoisting your Maple Leaf flag over the Turk's & Cacios Islands
truetruebahamian 9 years ago
If enough people refused to register and refused to pay the law would have to change. Look at the numbers bosses and gaming places that refused to comply with the law, and so the government changed the law to appease these outlaws and crooks - and there were only relatively few of them.
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