By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Democratic National Alliance’s (DNA) leader yesterday pledged that the party will “bring the economy back” so that Bahamians could afford its proposed 3 per cent payroll tax for financing universal health coverage (UHC).
Branville McCartney told Tribune Business that unlike the Christie administration’s National Health Insurance (NHI) scheme, a DNA government would partner with the private sector and offer Bahamians choice when it came to healthcare reform.
The party’s Vision2017 platform, formally released yesterday, promised to amend the NHI Act within one year of taking government office to allow true participation by private health insurance companies.
Touting its proposed healthcare reforms as different from those being implemented by the current government, the DNA promised that it will “ensure both public and private participation in the management and administration of the new Universal Health Programme”.
However, the centrepiece of its healthcare platform is a 3 per cent payroll tax that will be “mandated on all able-bodied citizens of the Bahamas” - meaning those active members of the workforce.
“That’s how we’re going to pay for it,” Mr McCartney said of the DNA’s plans, contrasting the party’s transparency on its proposed tax with the Government’s failure to say how much NHI will ultimately cost.
“The PLP speaks of NHI, but can’t tell us how they will pay for it. If we’re going to have it, this is how we’re going to have to fund it.”
Few political parties issue election platforms that promise new or increased taxes, given that this is largely seen as a voter turn-off. Yet the DNA has broken this so-called ‘global rule’, with a seeming rush to transparency that may be welcomed by more discerning Bahamian voters.
The Christie administration’s NHI primary care phase has been given a $100 million budget, through a mixture of funds ‘repurposed’ from elsewhere in its spending Budget and tax revenues likely produced by Value-Added Tax (VAT).
However, it has yet to disclose how much NHI will cost should it be rolled out to its full extent, and who will finance it, with many Bahamians fearing new or increased taxes are inevitable to fund such an expensive social programme.
Under the DNA’s plans ‘basic care’ at the existing government hospitals and clinics “will remain free as they are now”, with the payroll tax financing “basic care and minor operations, including minor dental, for all Bahamians”.
The Vision2017 document adds that Bahamians will also be allowed to retain their current insurance providers, and able to “top up to a premium benefits package” based on income and how much they are willing to pay for healthcare.
The DNA’s ‘Universal Health Programme’ pledges that Bahamians can voluntary increase their payroll tax contributions to 5-7 per cent of income earned if they wish to access the premium benefits package.
“The ‘Healthcare Tax’ will be earmarked primarily for the purchasing of medication, the upgrading of medical supplies and equipment, and the satisfying of claims to insurance companies and private physicians,” the DNA’s Vision2017 document states.
It calls for a Healthcare Council, formed from public and private sector representatives, and “spearheaded” by the Government and private insurers, to oversee the ‘Universal Health Programme’.
“The Healthcare Council will have a mandate to cut administrative costs in the hospital system, increase and monitor efficiency rates, and manage the procurement system of supplies for our public clinics and hospitals,” the DNA said.
Mr McCartney emphasised the partnership with the private sector, telling Tribune Business: “We need to have the private sector in there, and bring in more of the insurance companies. It will give the consumer more options.”
Arguing that the Christie administration “doesn’t want to say” how much its NHI scheme will cost, Mr McCartney said increased economic and jobs growth would help to make the DNA’s healthcare plans affordable.
“We intend to bring this economy back,” he said. “We have no choice, and on the flip side people will be able to afford this” healthcare programme.
Mr McCartney added that under the NHI scheme, Bahamians would still be paying for the same facilities, care quality and treatment outcomes that they receive now, with no improvement in these indicators or ‘value for money’.
Many observers, including healthcare professionals, view NHI as a government takeover of the industry, with private insurers reduced to the role of Regulated Health Administrators (RHAs), offering the same products at the same price, and merely reimbursing doctors with funds provided by the NHI Authority.
Comments
MonkeeDoo 7 years ago
The DNA could keep proposing vapour but it won't do any good. They don't have any seats now and they wont have any on the 11th May. If we have to listen to this ass for five more years I don't know what. Until you can follow you will never be able to lead, The DNA is leaderless.
Chucky 7 years ago
If you earn $2000.00 per month, after rent, and misc items that don't get charged Vat tax, one might pay vat on approximately 50% of their income (this is the portion of income one spends in various stores etc). This would amount to 7.5% x $1000.00 =$75.00 per month. Over the year based on this example, you would contribute about $900.00 to the government via vat.
With a 3% healthcare tax, $2000.00 / month x 3% = $60.00 per month, x 12 months = $720.00 contributed per year towards healthcare.
Seems strange that Vat has generated over 1 billion for the government in the first few years, so more than 333 million a year.
Yet the healthcare budget is supposed to be 100 million a year, and they are proposing to collect (take) almost as much as they currently take in via Vat tax. If they are going to spend 100 million per year on healthcare, then perhaps it should be a 1% payroll tax.
What is the meaning of this? I think it the healthcare program is just going to be another cash cow for the government.
Wouldn't it be nice if a politician actually could and would answer these concerns!
avidreader 7 years ago
The only concerns you are going to see answered after this election will be the imposition of more taxes until we reach a level of about 40% overall taxation rate and for which we will receive in turn a more bloated public service payroll served up with a side order of increased crime and more legalized gambling dens. Notice that those running for office avoid any discussion of the really serious issues. They reserve their positions on these matters for Cabinet meetings after the election.
banker 7 years ago
A payroll tax is paid by employers. That means that whatever they pay their employees, they have to add another 3% to pay for healthcare. That adds to the cost of the final product, which is passed on to the consumer. If Atlantis employs 8,000 people and pays them $250 a week, their weekly payroll is $2,000,000. This will increase their costs by $60,000 per week or over $3 million dollars per year. We are already at a competitive price disadvantage in tourism, and adding another $3 million to the cost of product by the prime employer of the Bahamas will cause some tourists to find cheaper vacations. As a result, there will be job losses because business will decrease.
It is sheer fooking nonsense to cripple our number one pillar of the economy with more costs in a market at which we are already noncompetitive.
The trouble with Bran is that he really is a lightweight that doesn
t understand economics. His first economics advisor was the famous eye-doctor, amateur economist who failed at every business that he started. When that didnt work out, he now has a guy who spent one year at the London School of Economics in a bird course for international development -- not domestic monetary and fiscal policy that one gets with even a basic 4 year economics degree.A payroll tax will lead to job loss and further degradation of the monolithic economy of the Bahamas.
Bran is more dangerous than Crisco Butt. Crisco Butt is a borrower and spender, but that doesn`t harm the tourism product. Bran will kill the goose that lays the tarnished golden egg.
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