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Monday, 13 November 2017

Counting the cost of the Universal Healthcare Act

The Universal Healthcare Act will cost EGP 600 bn to fully implement, said Vice Minister of Finance Mohamed Maait in an interview with Al Ahram on the new bill. The state will cover healthcare of citizens who will be unable to pay premiums into the system to the tune of EGP 200 bn, he added. The state will essentially pay the equivalent of 5% of the standard minimum wage to cover healthcare for each person who cannot afford to pay a premium into the system. This value will increase 7% annually, he added. The bill will set premiums for employers of 4% of each employee’s monthly salary. Employees will pay premiums of only 1% of their salary into the system. The state will deduct 3% of the cost of covering a breadwinner’s spouse and 1% for each child, Maait said. The state will also partially fund the system by allocating 10% of the sin tax on tobacco, Maait said, according to Al Borsa. The House of Representatives’ Healthcare Committee began a contentious debate on the act yesterday.

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