By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunemedia.net
TENSIONS between the government and insurance stakeholders are likely to grow after PLP Chairman Bradley Roberts likened the industry to a cartel last week, with one industry insider telling The Tribune yesterday that stakeholders are discussing contingency plans in case the Christie administration fails to incorporate some of its proposals into its National Health Insurance scheme.
Although the source did not divulge details about the talks, he noted that amid the confusion stakeholders have about specifics in the government’s NHI plans, there is still hope that the government will postpone its plan to introduce the first phase of NHI in January.
Stakeholders are cognizant of the administration’s tendency to reassess and postpone major plans amid public pressure, as was done with the constitutional referendum on gender rights and in the lead up to the implementation of value added tax (VAT).
This time, however, they believe the 2017 general election poses a particular influence on a government that wants to tout universal healthcare coverage to voters, according to The Tribune’s source, who spoke on the condition of anonymity.
With four weeks to go before the planned introduction of the first phase of NHI, Mr Roberts’ recent comments highlights the gulf between the government and the industry’s stakeholders.
In a meeting of the PLP’s National General Council on Thursday, Mr Roberts likened the Bahamas Insurance Agency (BIA) to a cartel that wants “unfettered powers to raise premiums to ensure profits.”
He highlighted the BIA’s call for caps on medical fees but not on insurance premiums as well as its call for the government to remove VAT from medical services and insurance.
However, The Tribune’s source said Mr Roberts’ comments were a reminder that “no meaningful consultation has taken place and there is lots of frustration among stakeholders.”
“We must go back to the drawing board. We are hoping common sense will prevail,” the industry insider said, adding that Mr Roberts comments fit into the pattern where governments seek to amass support for their health insurance schemes by demonizing the healthcare industry.
When contacted yesterday, another leading stakeholder, Emmanuel Komolafe, the chairman of BIA, said Mr Roberts’ comments misrepresented the insurance industry’s proposal.
He said that whereas a “cartel” would involve manufacturers and suppliers seeking to maintain prices at a high level and to restrict competition, the health insurance industry, in its counterproposal to the government, has called for a “body of representatives from the industry, the government and civil society” to determine the premiums and premium ceiling related to the essential benefits package under proposed NHI schemes.
“Insurers would offer the mandated benefits at a price not exceeding the established ceiling, which would be reviewed annually,” the BIA’s proposal says.
“The premium price would be based on standard actuarial and insurance practices.”
Some observers believe the health insurance industry is largely powerless in its efforts to counter the government’s moves.
One political observer said: “The idea of free healthcare as a right for the masses is compelling (so the industry) is powerless. When an insurance company makes claims, most Bahamians will say they are just being greedy. But in many ways the insurers have been caught late to this issue. They should’ve been talking a long time ago about how they will create plans to deal with the poor and to deal with pre-existing conditions. Though the latter would be expensive, at least offer it. But they didn’t and now they are on defence.”
Meanwhile, The Tribune’s industry source acknowledged that the impact of the first two phases of the government’s healthcare scheme is difficult to quantify at this time, particularly because the terms of the second phase, involving primary health care provision, have not been specified.
Open to exploring ways to providing healthcare to people with pre-existing conditions, the industry insider said many are still waiting for a response from the government to the industry’s recommendations that healthcare coverage be made mandatory in order to increase the pool of people contributing to the funding of healthcare in the Bahamas.
The government has not yet said how much NHI will cost taxpayers.
• For more analysis see Business section.
Comments
Abaconian 8 years, 5 months ago
Just another way for the PLP to collect more taxes without actually providing quality service in return, all the while fooling poor Bahamians into believing that the PLP has done them a service. It's a total scam. I don't have a problem with higher taxes, as long as I see a return for my money (better education, infrastructure, healthcare, standard of living etc). But who in their right mind believes that we are going to get these things in return for more taxes? Take VAT for example - What do I see with VAT? All I see is a higher costs of living and more burdens on doing business. Let's not forget that one of the primary purposes of VAT, according to the PLP, was to essentially replace our trade-prohibitive tax system ( high import duty) in order to conform with the free trade policies of the World Trade Organisation. What did the Government do? They introduced VAT, but they did nothing to reduce import taxes!!! And to add insult to injury, we now pay VAT on IMPORT TAX!! WTF!?! We are getting double taxed!!
The Bahamas is one of the most expensive countries in the world to live and to do business. You want to make it a better place for Bahamians? How about trying to lower the cost of living and the cost of doing business? How about a tax system that incentivises entrepreneurship and promotes competition? OR, if you do increase taxes how about you provide quality service for Bahamians, and stop lining your own pockets with the millions of dollars collected? Nah, we're just going to borrow and borrow, tax and tax, and hope that shit figures itself out. I predict a big recession coming our way. Many Bahamian businesses simply cannot afford to carry on like this, and the ones that can afford it are just going to pass the costs on to the consumers (you and me) thus making it even more expensive for the poor man to put clothes on his back. All the while corruption goes unabated, the B-dollar is on the verge of being devalued, our international credit rating is one level above "junk status", crime has become accepted as the norm, the environment is getting raped, and young Bahamians are receiving a piss poor education. It's going to be an interesting ride. This NHI scam could be the tipping point for our economy.
DDK 8 years, 5 months ago
WTF IS RIGHT! All of your remarks are right on! What is it going to take for the MAJORITY of Bahamians to realize that we are being taken for one great big ride? We only have to look across the pond and a bit to the south to see a continent where the ill treatment of citizens by so-called leaders who are lining their pockets is rife!
Honestman 8 years, 5 months ago
I agree with everything you say Abaconian. I think there are many Bahamians who don't appreciate just how precarious a position we are in. This government has taken us to the vey edge of the precipice and without clear heads, our economy could end up crashing to the ground. NHI could well be the tipping point. If folks think things are bad now then they need to understand just how much worse it will be once The Bahamas can no longer afford to peg the Bahamian Dollar to the US dollar. This however is the scenario we are facing if the PLP tries to force through an NHI programme which the economy cannot afford at this time.
Abaconian 8 years, 5 months ago
And to think that some people believe they are going to get "free health insurance". Nothing is free. The private sector will have to pay for it in the form of higher business costs, and they are simply going to pass on the costs to others in the form of higher priced goods, lower wages, employee lay-offs etc. Thus, in reality, the whole country pays for it. Well guess what, we can't afford it. Businesses can't afford it, and general public can't afford it.
If I thought we could afford it, I would say so. I don't have some inherent prejudice against universal health care. I've lived in a European country where everyone has access to universal healthcare, and I thought it worked pretty well. But the Bahamas is different. The government (i.e the tax payer) is already paying an astronomical amount of money for health care compared to other countries in the region, yet the quality of the health care in The Bahamas does not reflect the cost. Everything is relative. If the tax payer pays more, the tax payers should expect more. In the Bahamas, however, we seem to settle for paying more and more while receiving less and less. This government has a proven track record of being manifestly inept at controlling the country's finances and achieving "bang for buck." I think we should get our present healthcare service in line (a difficult task in itself) before we start bringing in big plans to reform the industry. I think we should consider that perhaps we cannot afford the proposed NHI proposals right now. Wouldn't that make more sense?
Unfortunately, the PLP doesn't try to appease those calling for sensible decisions. They'd rather try to fool the masses into voting them in next election. Being re-elected is all those gangsters care about. Nothing else.
observer2 8 years, 5 months ago
"Public Hospital Authority to place an offering of $25 Million in Series B Amortizing Notes at a fixed rate of 6%."
I guess they need the NHI salary deductions to help pay off the hospital loans.
ohdrap4 8 years, 5 months ago
just an exchange, the private insurance profiteers vs the govt profiteers.
B_I_D___ 8 years, 5 months ago
At least I had a better chance of getting GOOD healthcare with the private team.
ohdrap4 8 years, 5 months ago
i dropped my health insurance 10 years ago. luckily i have been able to afford what came my way, I prevent agressively.
I am truly sorry to have paid health insurance for 20+ years and never gotten a penny from it.
happyfly 8 years, 5 months ago
Ask Bradley about his family getting in to the pharmacy business the week after the PLP won the elections and now all the money has gone missing from PMH and doctors can no longer get their hands on half the medicines they need. So crooked and he still got the gumption to go to the press and talk about cartels
Abaconian 8 years, 5 months ago
Where is Tal Russell Lol. Come on Tal, let's here what you have to say about the NHI proposals. I'm interested.
Economist 8 years, 5 months ago
As proposed there is nothing to recommend NHI. It is a recipe for economic disaster for the country.
Does no one listen to the Rating Agencies? They say hold off with NHI. If they down grade The Bahamas the economy will come under sever stress if not collapse.
TruePeople 8 years, 5 months ago
Gov't is too busy talking all the time... they ein listen to nobody
cmiller 8 years, 5 months ago
The first and only roll-out for NHI will be to deduct money from our salaries like they do for NIB. Thats the ONLY thing this government has planned in regards to this crap.
MonkeeDoo 8 years, 5 months ago
A South Florida surgeon told them straight out that the US has 400 million people to contribute to Obamacare and it doesn't work. We only have 400 thousand people so how do they think that we can do it. And today the Inter-American Development Bank slams us for lack of productivity in the Civil Service. Civil Service includes the Hospitals. The Government is BRAIN DEAD !
Honestman 8 years, 5 months ago
They ain't brain dead. They know exactly what they are doing. It's those who vote for them that are brain dead!
BoopaDoop 8 years, 5 months ago
Actually, we only have about 200,000 legally working people to contribute. The balance of our population are children, retirees and illegal migrants who do not contribute but utilize government services.
observer2 8 years, 5 months ago
United Healthcare is the first Fortune 500 company to sound the alarm bells for Obama care. More to come.
http://www.bloomberg.com/news/article...">http://www.bloomberg.com/news/article...
Economist 8 years, 5 months ago
The Government has not said how much it will cost why?
Because they know that, once people know, there would be riots in the streets.
TruePeople 8 years, 5 months ago
it's like watching a child play with a gun.... i hope they just decide to put NHI down for now, till they have more an idea about what it is, because honestly....... i think they don't really have a clue. Like Cmiller say, they eyes is probably on the potential paycheck deductions...... thats it
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