National Health Insurance: A Key to Better Health Outcomes for the Poor

 

National Health Insurance (NHI) is a social health insurance scheme designed to provide financial risk protection and equitable access to quality health care services. NHI aims to pool health risks and resources, redistribute financial burden, and promote solidarity among citizens. NHI has been implemented in several countries, including Ghana, South Korea, and Japan, with positive outcomes for health care and economic development.

One of the key benefits of NHI is that it improves health outcomes, particularly for the poor. In Ghana, for example, the introduction of the National Health Insurance Scheme (NHIS) led to an increase in the number of people who can access health care services. According to a study by the Ghanaian Ministry of Health, between 2005 and 2010, the NHIS led to a 22% increase in health care utilisation among the insured population, with a higher increase among the poor (28%). The study also found that insured individuals were more likely to receive necessary care, such as preventive and curative services, and had better health outcomes than the uninsured population.

Another benefit of NHI is that it can boost economic growth. By reducing the financial burden of health care on individuals and households, NHI can increase household disposable income, which in turn stimulates consumption and economic activity. In South Korea, for example, the introduction of the National Health Insurance Corporation (NHIC) in 1977 was followed by an increase in household consumption, which contributed to the country's economic development. Studies have also shown that NHI can lead to greater job mobility and entrepreneurship, as individuals are not restricted to their current jobs for fear of losing health insurance coverage.

However, NHI is not without its challenges. One of the main challenges is funding, as NHI requires a significant amount of financial resources to be sustainable. In South Africa, the NHI policy proposals have been met with criticism from a few sectors for its potential to increase taxes and reduce private health care coverage. Concerns have also been raised that the NHI may not address the underlying factors that contribute to poor health outcomes, such as poverty, social inequality, and inadequate health care infrastructure.

Despite these challenges, NHI has the potential to improve health outcomes and promote economic development, particularly in low- and middle-income countries. By pooling resources and risk, NHI can provide financial protection and equitable access to health care services, which can lead to better health outcomes, particularly for the poor.

NHI will however, not be a panacea to overcoming the socio-economic challenges faced but the country. This will require a multi-faceted approach for which both the government and private sector will need to play a role, but the NHI is a critical starting point.