Gov’t gears up funding for Universal Health Insurance Act
Companies will pay equivalent of 3% of employee’s salary into national health insurance scheme under legislation due to hit the House next month: The Ismail government plans to introduce the Universal Health Insurance Act to the House of Representatives in October when the latter returns from recess, said Deputy Finance Minister Mohamed Moeit. He tells Al Borsa that ministry plans toallocate EGP 5 bn to the Health Insurance Authority, the state entity in charge of funding the health insurance program once the law passes Parliament. Under the health scheme, employers must pay into the national health insurance scheme a sum equivalent to 3% of an employee’s salary, while 1% of the salary will be deducted from an employee’s paycheck, said Moeit. Funding for the program will also come from taxes on alcohol, cigarettes and nightclubs, he added. The law would require the government to upgrade and modernize the 550 hospitals it operates to provide better service. The program will be implemented in phases, with the first targeting five governorates to gradually build up capacity to cover the country.
Meanwhile, the African Development Bank will apparently kick in a USD 225k grant for a “financial assessment” of the national health insurance program, according to a statement yesterday from the International Cooperation Minister.