Why Tanzania CAG warns of NHIF sustainability dangers
President Samia Suluhu Hassan receives the 2022/23 government audit report from Controller and Auditor General Charles Kichere at State House in Dodoma on March 28, 2024. PHOTO | STATE HOUSE
What you need to know:
- He cited the increasing prevalence of non-communicable diseases as another factor for financial problems in the fund, costing Sh137.80 billion per year.
Dar es Salaam. Tanzanian Controller and Auditor General (CAG), Charles Kichere, has warned about the sustainability of the National Health Insurance Fund (NHIF), identifying several challenges, including a substantial debt owed to the fund by the government.
Presenting the summary of audit reports for 2022/23 in Dodoma on Thursday, March 28, before President Samia Suluhu Hassan, Mr Kichere highlighted NHIF's consistent losses over the past five years.
In the financial year 2022/23, the loss was Sh156.77 billion, down from Sh205.95 billion in 2021/22, he stated. Mr Kichere noted a 14.6 percent increase in member contributions alongside a 10 percent rise in expenditures, signalling efforts to address the fund's situation.
However, he underscored challenges jeopardising the fund's viability, citing outstanding government loans as a significant burden.
"A loan of Sh208 billion is imposing a significant financial burden on the fund," he said, adding that he is aware the government plans to repay Sh180 billion in the next budget.
Another challenge affecting NHIF, Mr Kichere said, is the fact that retirees and their spouses were accessing services without contributing, costing the fund Sh84.70 billion annually.
He cited the increasing prevalence of non-communicable diseases as another factor for financial problems in the fund, costing Sh137.80 billion per year.
"These challenges raise doubts about the fund's sustainability," he cautioned. Mr Kichere also proposed that NHIF should revisit its strategies for fund development, emphasising the importance of the government's repayment of loans to the health insurance fund to enable it to continue providing services.
Commenting on the matter, the head of government communication in the Ministry of Finance, Mr Ben Mwaipaja, affirmed the government's intention to address the issue.
"The government plans to pay part of the funds in the 2024/25 budget, as was pointed out by the CAG when reading part of his report," said Mr Mwaipaja.
