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PM: No decision yet on NHI tax

Prime Minister Perry Christie

Prime Minister Perry Christie

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

PRIME Minister Perry Christie said he is “amazed” by the direction the debate surrounding National Health Insurance has taken as he refuted concerns that his administration has already decided to impose additional taxes on Bahamians to fund the controversial initiative.

Mr Christie yesterday explained that the government had not made a decision on how it will cover the cost of NHI because it was still receiving advice on how to develop the universal health care scheme.

However, he told reporters that at all times the government reserves the right to determine how NHI is rolled out, which would determine any new tax rate to come.

Mr Christie also responded to Tall Pines MP Leslie Miller, a member of the governing party, who predicted on Tuesday that private health insurers will lay off employees as their profit margins are affected by the NHI implementation.

The prime minister said Mr Miller should know that the government would not make “stupid” decisions.

“Someone leaked a document on NHI,” Mr Christie said, “and everyone drew the conclusion that this is how NHI will be implemented. The government at all times reserves the right to determine the rate of the roll out of NHI. Meaning that we could roll it out and (maybe) the first phase is $300m.

“We could roll it out and the first phase is $100m that will determine rates and whatever cost or tax. It is entirely in the hands of the government.

“Right now we are putting in place all of the analysis that we need to be able to say to the Bahamian public this is how the final product will look like, this is what it will cost and this is how we intend to roll it out so that it will have minimal if any negative impact.”

Costa Rican accounting firm Sanigest Internacional provided a report to the government last October on the feasibility of NHI and presented options for financing universal healthcare.

According to the report, of which The Tribune has obtained a copy, the consultants have suggested a payroll tax ranging from one per cent to five per cent to finance NHI.

The report explores various other revenue-raising options, including levying a “sin tax” on alcohol and tobacco that would, the report estimates, yield some $64.93 million in NHI revenues in 2016, an estimate the report concedes is at the high end. This yield, Sanigest forecasts, will increase to $68 million in 2017 and $71.276 million in 2018, with the increases driven by economic growth.

Another option identified is a tax on auto insurance premiums.

According to the report, NHI could cost $633 million if implemented as a comprehensive package.

Mr Christie repeated his position that too many people in the country did not have money to afford quality health care.

“We must be very careful in a country where people are of the view that if you don’t have insurance, if you don’t have the means to get it and you get sick and you die,” he said yesterday.

Meanwhile, Bain and Grants Town MP Dr Bernard Nottage agreed yesterday that universal health care was long overdue.

When asked if he was of the view that Bahamians could handle another tax, Dr Nottage said the means of paying for NHI had not been determined.

“Any discussion of the matter is mere speculation. Let us wait until the relevant bodies meet on an actual proposal for the financing, then I think everybody would be a little bit surprised,” Dr Nottage said.

Fort Charlotte MP Dr Andre Rollins, a PLP backbencher, added yesterday that it would be a “mistake” for the government to move forward with NHI without considering a national lottery.

Comments

TalRussell 9 years, 9 months ago

it is rare time in any government's mandate when ALL elected representatives from both sides of the Honourable House of Assembly can come together to truly offer something to heal a nation's people.
Prime Minister regardless of what your foreigner consultants define it as, you are not helping to sell National Health Insurance to the people by defining it as an additional tax. Sell it for what it really is and that it is a "insurance benefit premium.
I have never heard of a single Bahamalander ever saying they are paying "taxes'" to stand to receive a insurance benefit from their private medical plan. Employers are not deducting taxes but premiums.
PM don't mess one up in the typical PLP fashion, cuz it is too important for it not to be done like the cabinet did with the numbers referendum and so far in formatting a constitutional referendum. PM and members of the cabinet and House, this can truly become a well defined benefit for the health betterment of ALL citizens and those working or residing here legally. It is a premium that WILL benefit every single person because they are making their insurance premiums and be thankful for it, when they or a family members most need medical care.

GrassRoot 9 years, 9 months ago

1000% agree. It is all in the packaging. It is already controversial before the real discussion started. I believe the dismal state of the health of an average Bahamian (add mercury poisoning at age 40+ due to high consumption of fish, skin cancer, breast cancer, diabetes) is a serious problem that puts a good portion of our population out of the race for being able to lead a normal life and being able to pursue a job/career. If breaking a leg empties your bank account, or breast cancer eats up your retirement savings, something needs to happen. I suggested a two class medical system that is being paid by all of us through payroll. Lower percentage than suggested accessible for all, but no Rolls Royce. Government to hire three hundred Cuban doctors (eyes, cancer, skin, general practicioners), they travel to the islands, are inexpensive (or cut a deal with the Cuban Government). there are thousands of Cuban doctors in Ecuador, Zaire, Mocambique, Venezuela. Cuba has eye clinics that are being filled with Jumbo Jet loads full of French people on a weekly basis. Whoever wants to see these "doctors for the people" have to do a small co-pay of lets say 5 BSD per visit and the rest is paid for by the Government - so a state paid lower class medical system - communist style. Whoever does not like that can still go back to his own doctor under his own separate private insurance arrangement or pay out of pocket. this is not rocket science. Maybe a system that works for 20 years until the health of the average Bahamian has increased. Not sophisticated but easy to administer and it can be run through a trust to reduce corruption.

TalRussell 9 years, 9 months ago

Comrade GrassRoot let's both put it this way. If this PLP cabinet were responsible for packaging meats for Super Value's chain of food stores, you'd have cook the meat, before you left the damn store, cuz who would be stupid enough to trust the meats best you eat before date. Now, you can appreciate why it is that Comrade Rupert , wants keep this PLP cabinet's hands off his stores.

B_I_D___ 9 years, 9 months ago

Well you see the problem is this...we Bahamians like our free things...and even though NOTHING is free in this world, the fact that for better or for worse someone in need can walk up to PMH and get treated, essentially for free, that's what people see. Tell them that all employed individuals now have to pay 5.8% of their income and everyone comes to a screeching halt and screams bloody murder. Myself being one of them. I don't want to pay for that, that hospital and it's services are crap, and another totally mismanaged government entity. Money will get sucked out of the NHI and into select people's pockets faster that you can blink. The government and how governing this country (regardless of parties) needs to change, and change now. The powers that be need to PROVE themselves to be trustworthy...get the FOIA and all that going and in place, earn the people's trust through transparency...THEN look at adding more things if need be...and if taxes need to come to cover it, be prepared to show the finances behind the tax.

DonAnthony 9 years, 9 months ago

In a different Bahamas, one where government was honest, competent, efficient, and transparent a national healthcare program would be wonderful. Sadly that is not the reality we have today, there is not one government ministry that reflects these qualities, rather it is just the opposite. The best I have seen are the govt clinics that I would argue work really well given their limited resources. We can not even ensure that there is a valid insurance policy on a public building with a real insurance company,and govt wants me to entrust my healthcare to them? No way. These govts have messed up everything they touched, clean up your act before you ask me to pay for substandard healthcare.

TalRussell 9 years, 9 months ago

Comrade DonAnthony, if we as a people sat around for a future time In a different Bahamaland, one where the peoples government, are all about possessing the honesty, competency, efficiency, and transparent, enough to introduce and manage a national healthcare program, while it would indeed be a wonderful for the people government thing, it's just not what happens with governments the world over. Can you provide your list of governments that fits your dream vision of a good and honest government?
But in the meantime we must relay on the elected government of the day to implement new programs and run the nation's state of affairs, even when done poorly.

Our only hope for honesty in government salvation must rest in the hands of the people's relentless efforts to "force' our government officials practice some form of real transparency.

DonAnthony 9 years, 9 months ago

Take your pick of any of the scandavian countries ( Norway, Denmark, Sweden, Finland). Need any more Tal. These govts are all characterized by a high level of socialism. Taxes are very high but the govt efficiently and honestly administrates very competent govt ministries. Finland has the best educational system in the world. In most of these countries, education is free some as far as university, healthcare is free and some of the best in the world. They are all consistently rated as the best countries in the world to live in. We are not there, not even close, and a poorly run national health program is worst than none at all. That is just reality. Our beauracracy is not developed enough to run programs of this import and magnitude.

duppyVAT 9 years, 9 months ago

Yeh ... but dont compare us with N Europe. Those people pay over 50% of their salaries back to the government in taxes. We have a problem with7.5% VAT ............... yet alone another 5% for NHI ....................... SIGH

themessenger 9 years, 9 months ago

The Prime minister said "Mr. Miller should know that the government would not make stupid decisions"???? SAY WHAT???? This is Christie's brand of "I say what I say & I say what I say "at its best considering the multitude of stupid mistakes perpetrated on the Bahamian people by our governments over the last forty some years and the even stupider ones being made on our behalf now.

ThisIsOurs 9 years, 9 months ago

Dont be confused, Dr Gomez was very clear, "tax or die"

proudloudandfnm 9 years, 9 months ago

In other words we will be taxed just don't know how much yet or how.

If webshops truly generate 1 billion a year then I want half for my country....

gbgal 9 years, 9 months ago

Our little country cannot afford NHI, period! We lack the infrastructure to deal with hundreds/thousands of customers on a daily basis, for one. No one will have the patience to wait on a list for weeks to get an appointment as happens in UK and Canada, for example. The meds won't be available when needed, making for great dissatisfaction. There will be high expectations and low reality checks. Better to use some of the money from the Numbers taxes to upgrade health clinics now. Work on limiting expenditure first and get a handle on managing National Budget before adding more problems.

realfreethinker 9 years, 9 months ago

gbgal you are correct,the only thing I have issue with is the waiting times. it is months waiting time. With just a hand full of people using pmh now you have to wait up to almost a year to get an operation unless it is life threatening. Could you imagine when you add a few hundred thousand more ?

TalRussell 9 years, 9 months ago

Comrade DonAnthony your list of honest governments is not mythical but it does not make them perfectly honest. Once you peel back the layers, they still fall short of the scoring target of 10 out of 10 on the index, for more honesty in government.
I'd say you endorse what I said, that it is up to "we' as a people not to settle for anything less than increased open transparency from our elected government. For it is only because the Scandinavians are relentless in wanting to know, what their governments are doing, that they are considered as being among the less corrupt among governments.
We as a people shouldn't be sitting around while waiting for any government to practice real transparency, And,if so it is more of a mentality far too many of our people have, that everything has to flow down from government.
Governments, not even the Scandinavians, are known for fighting against corruption? It is their citizens who demand it. Why shouldn't we Bahamalanders?
In the meantime while we all fight and wait for transparency, the people are still in dire need to benefit from a National Health Insurance Plan, and the country cannot afford to wait, cuz taxpayers, are already paying some 1/2 a Billion dollars yearly, for what we all agree on, is the delivery of a present day piss poor health care system.

TalRussell 9 years, 9 months ago

PM let me warn you that from among your PLP cabinet and back bench, there are some with a vested interest for you to sell NHI, as a new tax - cuz they know, it spells failure, if sold-as a tax and not a benefit for ALL citizens
And, so it applies from across the House of assembly isles. Thy know why they will they want it sold to the people as a new tax the people cannot afford. At least 4 MP Judas's immediately flash in my eyes and from both sides of the isles. Do not listen to those calling for basic NHP with an added deluxe coverage. Or, those calling for a premiums means test
PM these people are sick alright...but in their hearts - cuz they are not the ones who cannot even afford a simple blood test ordered by da doctor. Some these politicians ne stretching out in back their chauffeured taxpayers cars, while they pass the old tired aching body lady trying make her way to the PMH.

ohdrap4 9 years, 9 months ago

PRIME Minister Perry Christie said he is “amazed” by the direction the debate surrounding National Health Insurance

Marie Antoinette was amazed too. Let them eat cake.

And after the 1992 election loss, SLOP was amazed too.

SP 9 years, 9 months ago

............................... Five Things Immediately Come To Mind With NHI ...........................

1) Yes, Bahamas unquestionably needs NHI

2) Explicit explanation definitely required how they plan to stop Haitians abusing the NHI system at Bahamian taxpayer expense. We are tired of paying healthcare for damn Haitians.

3) Why would the electorate trust the PLP/FNM with NHI funds when both refuse to pass a Freedom of Information Act allowing "We The People" to verify tax's and resources are properly managed.........What are they so adamant about hiding.

4) PM Perry Christie's biggest obstacle here is, he has done a very good job of losing the peoples trust.

5) DPM Phillip Brave Davis involvement in EVERYTHING shady, questionable & perceived underhanded isn't helping any!

duppyVAT 9 years, 9 months ago

I agree ................ and how will you get Bahamians to pay for NHI????

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