John Dramani Mahama, the Flagbearer of the National Democratic Congress (NDC), has announced his intention to scrap the Earmarked Funds Capping and Realignment Bill, 2017, introduced by Finance Minister Ken Ofori-Atta in Parliament.
Mahama's declaration comes in response to the enactment of the Earmarked Funds Capping and Realignment Bill, 2017 (Act 947), aimed at freeing up public funds in Ministries, Departments, and Agencies (MDAs) for diverse purposes since 2017.
Under this legislation, earmarked funds for each financial year are capped at 25 percent of revenue.
However, Mahama contends that this approach undermines the National Health Insurance Authority’s (NHIA) ability to settle arrears owed to hospitals reliant on the National Health Insurance.
Speaking at a breakfast meeting with the Clergy and faith-based organizations in the Eastern regional capital, Mahama emphasized that repealing this bill would unlock additional funds for the NHIA, potentially alleviating challenges faced by hospitals treating NHIS cardholders, burdened by delayed government payments.
“Treating NHIS cardholders is challenging as the government delays payments, leading hospitals to struggle. Many hospitals can’t provide medicines, forcing individuals to seek them elsewhere due to budget constraints,” Mahama remarked.
The situation exacerbates as hospitals grapple with the inability to procure essential medicines, compelling individuals to explore alternatives due to financial limitations.
Mahama attributes this predicament to the introduction of the capping and realignment law by the Minister of Finance, which restricts funds allocated for statutory purposes.
In the event of the NDC assuming power, Mahama pledges to dismantle this legislation, ensuring that NHIS budget funds directly contribute to the fund.
“If in power, we aim to abolish this law, ensuring NHIS budget funds directly contribute to the fund, enabling adequate payments for hospital claims,” Mahama affirmed.
This strategic initiative aims to empower the NHIA, facilitating sufficient payments for hospitals’ outstanding claims, thereby revolutionizing the landscape of healthcare funding in the country.
John Dramani Mahama