Dr. James: NHIS not the same as NIS

Chief Executive Officer (CEO) of the Queen Elizabeth Hospital (QEH), Dr. Dexter James, does not want Barbadians to be confused between National Insurance Scheme (NIS) and the National Health Insurance Scheme (NHIS).

Speaking at QEH’s fifth Annual Public Accountability Meeting, at the Hilton Hotel, last Thursday evening, where the proposed National Health Insurance Scheme was at the centre of attention, Dr. James explained that too often, the two different types of insurance schemes are misunderstood for each other, while they are two different paradigms.

“A National Insurance Scheme collects contributions now to predominantly pay for the future. Yes, it is a security benefit, but the main reason is to collect resources now to make provisions to pay pensions in the future. But, under a National Health Insurance Scheme, you are collecting resources now, to pay right now.

“So as providers provide services, they submit their invoices to whoever is holding the fund and they expect to get a reimbursement right away,” he said.

“So the investment and financial arrangements are different. One is collecting resources now to pay out in the future, and the National Health Insurance Scheme is collecting money now to pay out now,” the head of the QEH further explained.

This model of health insurance funding, if adopted by Government, will allow for employer/employee contribution to a fund that is independent of Government and provides for equity in access, by pooling a number of risks together so that the young will provide resources to compensate for the old, the rich for the poor, the employed for the unemployed, and the well for the sick.

Government’s total health expenditure currently stands at seven hundred and thirty-three million dollars, of which, just over four hundred million is provided through taxation.

The proposed model of insurance is being designed to ease Government’s pocket in the area of health financing. (AH)