The Zambia Federation of Employers – ZFE has raised concerns over the administration costs that will come with the set up of the National Health Insurance Scheme – NHIS saying the projected K100 million per month collections from workers and employers based on 1% gross payroll contributions will come with a huge administrative cost, that will come from the new management team, the recruitment of staff and establishment of new structures throughout the country.
Last week, Health Minister Chitalu Chilufya announced that 1% gross payroll deduction has been agreed and that the National Health Insurance Scheme will begin operating and deduction end of July. This is the basis of the estimation that the scheme will raise K100 million per month from the 700,000 formally employed Zambians.
ZFE acting President Steven Sikombe says the objectives of the scheme as stipulated in the act is to provide for sound financing for a universal health service in the country but that if a huge sum of money is spent in administrative costs means the objective will not be realized.
Addressing the media in Lusaka on June 9th 2019, Sikombe expressed concern as to why the National Insurance Management Authority newly appointed Director General James Kapasa proceeded with the announcements about the commencement of deduction from worker’s gross salaries when Dr Malama, the permeant secretary of the Ministry of Health attended the consultative meeting at which both ZCTU and ZFE made submissions on how the scheme can be managed for the benefit of every Zambian.
He has however accused the Health Minister and the Director General of not respecting social dialogue and simply despise the important role that legally created stakeholder organizations of workers and employer’s play in national policy dialogue.
“Already we have some information that the salary of the Director General of the National Insurance Management Authority is K170 000.00 per month and if this is true, how much will be spent in total on personal emoluments when the full establishment of staff is employed?
In any case how can a health scheme that is meant to benefit members of the public pay a huge salary to its Chief Executive Officer before the scheme even starts operating?,” he questioned.
Sikombe has however suggested that the scheme should have been embedded into the National Pension Scheme Authority – NAPSA which should use its existing structure to collect and manage the funds while the ministry could be responsible for accrediting health center and administration of medical services.
He also called on Health Minister Chitalu Chilufya to open a meaningful dialogue with key stakeholders on the matter, failure to which the National Health Insurance Scheme will fail, as compliance levels are most likely to be low.
