The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmkenzie@tribunemedia.net

The Chamber of Commerce’s chairman has called for the Government and insurance industry to consider a ‘joint venture’ over the National Health Insurance (NHI) scheme’s proposed public insurer.

Gowon Bowe suggested the private sector could contribute management expertise and labour resources to Bahama Care, in a potential compromise that could ease tensions with the Government over its public insurer plans.

He urged both sides to “think outside the box” and seriously consider a joint venture, given that it would address some of the reservations harboured by each party.

“I strongly believe that there has to be some consideration to thinking outside the box between the Government and the insurance companies as to whether we set up a joint venture, where the insurance companies are able to contribute their labour resources, their expertise into a central unit, and by virtue get shared ownership,” Mr Bowe told Tribune Business.

“While they [insurers] may lose the opportunity to offer the Vital Benefits Package because that’s done through the central joint venture, they continue their business but with a reduced overhead cost, because all of the costs associated with the first is shifted into a joint venture. The supplemental packages are the ones they continue to sell, and those are higher margin.

“That hasn’t been discussed. There has always been a bucking of heads on whether there should be a public insurer or should it be with the private industry. The question is whether there is an opportunity to collaborate, and for the insurance companies to be the administrators of the central [NHI] programme.”

The Bahamian health insurance industry has long argued that the proposed public insurer is unnecessary, and would represent a waste of taxpayer funds.

This, they argue, is especially because NHI’s design would see all health insurance underwriters - now operating as regulated health administrators (RHAs) - providing the same policies at the same cost.

The Government, though, has held firm to the notion that a public insurer is essential to protecting consumers, especially those Bahamians who can least afford health insurance.

It has also questioned whether private health insurance companies are afraid of the competition a public insurer would provide.

The revised NHI Bill was released last week, with the most notable change being the elimination of the mandatory legal requirement for all Bahamians and legal residents to sign up for the scheme.

”We have a lot of issues that we hope we can work out with the NHI Secretariat,” said Mr Bowe. “The BIA is a member of the Chamber through its various companies, and the Chamber certainly supports the industry.

“But the Chamber also represents a much wider business group, and the objectives of the BIA may not always align with the objectives of the business community. We have a delicate balance of supporting our members in the insurance industry, and encouraging them to be participants in the discussion so they protect their industry, but also meeting the overall objective of a cost efficient programme that will provide a social benefit that the Government is offering.”