World Bank Warns of Financing Shortfalls in NHIS, Threatening Health Progress in Ghana
The World Bank has highlighted significant financing shortfalls in Ghana's National Health Insurance Scheme (NHIS), which are hampering health progress and the protection of vulnerable groups. According to the World Bank’s Public Finance Review, the NHIS is grappling with challenges, including the non-receipt of its full allocation from the National Health Insurance Levy (NHIL), which is capped by a law. Additionally, there is a growing gap between budgeted amounts and actual funds received from the Ministry of Finance. These financial constraints have hindered the NHIS's ability to achieve its goals, despite past public funding improvements in health and nutrition outcomes.
Moreover, the World Bank's report reveals that the high administrative costs associated with the NHIS are limiting its spending efficiency. Less than 60% of the NHIS budget is currently being allocated toward claims, which affects the effectiveness of the program. The report also assesses social assistance programs, acknowledging that while programs like LEAP, LIPW, and GSFP are well-targeted at the poor, their impact remains limited due to low benefit levels. These programs account for just 0.2% of the country’s GDP, well below the average of 1.5% for comparable countries, highlighting the insufficient funding to make a significant impact on poverty reduction.
The World Bank further underscores the critical role of external funding in supporting social assistance programs in Ghana. In contrast to the relatively low allocation for social programs, energy subsidies represented about 2% of Ghana's GDP in 2023, totaling US$1.5 billion. The report stresses the need for increased investment in social assistance to help vulnerable groups and improve the efficiency of the NHIS. Without addressing these financial challenges, progress in health and social protection will continue to be undermined, leaving many at risk of inadequate support and healthcare services.
World Bank Warns of Financing Shortfalls in NHIS, Threatening Health Progress in Ghana
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