Reader poll
Are you in favour of a National Health Insurance scheme funded by a new tax?
- Yes
- No
179 total votes.
By TANEKA THOMPSON
Tribune News Editor
tmthompson@tribunemedia.net
GOVERNMENT consultants have suggested the Christie administration levy a 5.8 per cent pay roll tax, increase taxes on “luxury items” such as alcohol and tobacco and “double” the ceiling for National Insurance Board contributions to fund the proposed National Health Insurance scheme, The Tribune understands.
The consultants also estimate that National Health Insurance (NHI) will cost taxpayers as much as $650m to implement, The Tribune was told.
According to a source who has seen the report prepared by Costa Rican accounting firm Sanigest Internacional, which was turned over to the government late last year, the consultants have also suggested a one per cent pay roll tax to help fund the National Insurance Board’s Prescription Drug Plan, however it is unclear if this will be a separate tax from the suggested 5.8 per cent measure.
If these tax increases are adopted to implement NHI, they will essentially wipe out the disposable income of the middle class, added the source.
The report also outlines a number of targets the government should meet in order to implement NHI for the government’s proposed January 2016 deadline.
However, the source who spoke to The Tribune has considerable doubt the government will be able to meet these benchmarks in order to roll out the plan early next year.
“It is a very ambitious project,” said the source who spoke on condition of anonymity. “They are already behind schedule. We are talking about a total revamping of how healthcare is delivered. It’s huge. VAT was a massive undertaking . . .now you are talking about a net reduction of spending of 10 per cent of pocket money for NHI. What you are talking about is impacting the buying power of the middle class and creating a socialist state.”
The source added the government’s universal health insurance plan will likely be embraced by those who will not have to contribute financially for its implementation, while directly impacting the pockets of the middle class.
“It will sell to those individuals who don’t have to pay for it because if you’re indigent you don’t have to pay . . .the wealthy and middle class will pay for it.
“They are doing a very effective job of managing the masses,” the insider said. “The masses are being told this is good for them . . .that they are going to get private insurance for next to nothing, but the truth is they will pay through the nose, but the people who will pay through the nose will be the middle class. Is it sustainable? No, this is all about (the election in) 2017.”
The source said many are still reeling from the effects of value added tax, which was implemented at 7.5 per cent on January 1. The tax applies to most goods and services.
The government has made industry stakeholders who have a copy of the report sign confidentially agreements barring them from publicly speaking on the document or releasing it, The Tribune was told.
This is seen by some in the industry as a way for the Christie administration to control the discussion on the controversial initiative and limit the public push back on the scheme.
Last week Monday, Health Minister Dr Perry Gomez told the House of Assembly that NHI “will likely” be financed through a new tax on Bahamians. At the time he did not specify what this new tax would be nor did he say how much it would cost taxpayers to introduce the plan.
He added that taxes are “better than death.”
“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,” Dr Gomez said.
“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.”
Last week Dr Gomez told parliamentarians that NHI plans were well underway as Sanigest Internacional and the Ministry of Health had recently executed a consultancy agreement. The agreement 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 election.
The initial cost was pegged at $235 million, but the private sector pointed out at the time that the Commission’s 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 January.
A little more than a week ago, PLP MP for Fort Charlotte Dr Andre 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.
Last week, Opposition Leader Dr Hubert Minnis said the Free National Movement would not support increasing taxes or new taxes to fund NHI.
NHI will remove the need for money at the point of care, according to officials.
Although a National Health Insurance Act was passed by the first Christie government in 2006, it has only been carried out partially through NIB’s Prescription Drug Plan, which began in 2010 under the last Ingraham administration.
Comments
realfreethinker 9 years, 1 month ago
What are these guys on. They must be out of their minds. They have already decimated the middle class now they are sending them into poverty. These assholes need to go and I mean now. we cant wait until 2017,there wont be any country left to govern.
Honestman 9 years, 1 month ago
Look, let's get one thing straight. This administration couldn't open a corner street grocery store in ten months far less a mammoth undertaking such as NHI! There is no way that NHI can be implemented successfully by ANY administration without the ground work being properly prepared. This administration is INCAPABLE of successfully introducing NHI within this parliament, far less from the beginning of 2016, and the cabinet knows that to be true. So why do they treat the public like idiots? Why does Perry Gomez stand in the House and spout out such nonsense? Does he not consider his reputation? NHI is a noble cause and something that the country must aspire to BUT serious research must first be undertaken to ensure that it is workable and affordable. It also needs to be implemented against a background of freedom of information and by an administration that can be trusted. The PLP was trusted with delivering the new block at PMH (a block that was on budget and almost ready to open prior to the last election) and look at the abject failure of the government to complete the project and the millions of dollars lost on missing drugs. Can you imagine how much money the country would lose if this administration is allowed to force through NHI without the groundwork being properly prepared? Once again the PLP treats the electorate like fools and many will indeed buy into their nonsense. Mark my words however. NHI will NOT be introduced within this parliament but the PLP WILL dangle the prospect of it as a carrot to sway its reducing band of gullible supporters.
asiseeit 9 years, 1 month ago
The government is killing this country. Bahamians better wake up because they are going to be taxed into the dark ages and will receive just what they are getting now, NOTHING. We do not receive value for money and any right thinking person knows they are being ripped off by government. There is no value for money. Government better try and sort itself out and start to SERVE the people before they go spouting off about more taxes. Keep pushing and sooner or later the people WILL push back. Perry them are totally out of touch with what the common man is facing, cheaper they slow their roll.
themessenger 9 years, 1 month ago
I agree with your assessment of the governments carrot on a stick approach as an election tool,but don't rule out the possibility that they wouldn't try it on as their track record for pissing away other peoples money speaks for itself.And unfortunately, the ones that will buy into it are those indigents that don't have to pay for it, and even more unfortunately there are a lot more of them than the rest of us. PGC's legacy, you know,the one he's so enamored with,could well be that Prime Minister that masterminded and presided over the destruction of the Bahamian middle class.
ohdrap4 9 years, 1 month ago
an article in the guardian says that nhi is 'COMPULSORY' cwhich includes legal resident, SELF EMPLOYED, UNEMPLOYED. 5.8% OF THE INCOME OF THE UNEMPLOYED IS ZERO.
The foolishness already started, and they say they will take care of undocumented illegals already.
If thgey make this compulsory, they better give me benefits. i have paid prescription drug plan from inception and cannot use it till age 60.
Honestman, they treat the public like idiots because they behave like idiots and accept it, they cannot even gather half a dozen to march against it. Most people will be blackmailed by: "remember your uncle-auntie-mother who died of a heart attack because he did not have health insurance?"
The_Oracle 9 years, 1 month ago
Those in Government, Cabinet, house, opposition, senate could care less about socialism, it will not affect them as they have placed themselves above the law and population. It is the public that will pay for the failed experiment, just as the public will end up paying the debt. Amazing how we don't lend tools, cars, houses to family or friends because we know the outcome, (loss/destruction) but we let these miscreants trade on our assets, productivity and futures. The private sector better wake up, it is your money they want. Got your exit strategy figured out?
asiseeit 9 years, 1 month ago
Those that can are headed for greener pastures. The middle class in this country is getting smaller and smaller. I wonder what they will do when the middle class SLOP worked so hard to create is wiped out along with all the taxes they pay? This government is playing with fire.
TalRussell 9 years, 1 month ago
Comrades citizen taxpayers, by the close of 2015 we the taxpayers will have funded the present day government provided health care system, half-a-billions dollars. Unfortunately, this PLP are again going to mess up and complicate explaining why National Health insurance (NHI) is not only a good thing but it is a smart , more affordable than not to have it. If you are among the majority who CANNOT afford a visit out your pockets or private health insurance - to the Doctors Hospital, the private family doctor, medical specialists or medical testing lab, please raise your hands in favor of doing away with a broken health care system - already costing billions ...all the rest you lucky people, please don't move?
SP 9 years, 1 month ago
......................... OMG How Many More Haitians Are They expecting?! ............................
5.8 per cent pay roll tax, increase taxes on “luxury items” such as alcohol and tobacco AND “double” the ceiling for National Insurance Board contributions?
Why not just implement an income tax instead?
ThisIsOurs 9 years, 1 month ago
They can't do it ten months, nobody could. My fear is that they will do "something", hit rock bottom, realize the big hold they've dug us into and continue digging. How many people told them carnival needed a two year implementation? Did they listen?
duppyVAT 9 years, 1 month ago
This is a serious shift in how Bahamians look at governance ............ For the first 40 years, we were told that the government would take care of you. Now we are told that we must sacrifice about 20% of our salary for debt, national development, retirement, unemployment, education and healthcare. That is a serious shift in our national mindset. Welcome to the 21st century.
digimagination 9 years, 1 month ago
..." Increase taxes on “luxury items” such as alcohol and tobacco" and, wait for it, firearms! Sorry, that was probably in bad taste considering these times.
asiseeit 9 years, 1 month ago
Alcohol is the one release the poor man has, say luxury, how about we tax silk suits!
The_Oracle 9 years, 1 month ago
Firearms "tax" already tripled! Legally registered that is. Yep, for 40 years they were looking after us all right, now we get to pay for it and more! Income tax is just around the corner anyway, these are just "minor taxes" to lube the wheels until.......... What we have is our Government joining the Governments of the world in the shift via the IMF, WTO etc in considering the wealth and productivity of their citizens as "theirs" Theirs to tax, spend and borrow against. Fine to say you're leaving but, where to? Anyone else remember the influx of Jamaicans in the 60's?
jusscoolin 9 years, 1 month ago
The government will only succeed in tripling the Obituaries section of this newspaper. Funeral homes will become billion dollar companies!
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