Parliament has approved the government’s GH¢10.7 billion budgetary allocation to the National Health Insurance Scheme (NHIS) as part of the passage of the 2025 Appropriation Bill. Parliament also approved a distribution formula to enable the National Health Insurance Authority (NHIA) to undertake its earmarked activities for the year.

The allocated amount approved last Friday represents an increase of nearly GH?4 billion over the GH?6.87 billion designated for the National Health Insurance Fund (NHIF) in 2024. This significant boost is a direct result of the current government's decision to uncap the NHIF, allowing for greater financial flexibility.

The approval was granted following a closed-door session of the Committee of the Whole, where officials from the National Health Insurance Authority (NHIA), led by Chief Executive Dr. Victor Asare Bampoe, engaged with lawmakers.

During this meeting, the House endorsed the proposed formula for the disbursement of the NHIF for 2025. A substantial portion of the GH?10.7 billion allocated to the National Health Insurance Authority (NHIA) is earmarked for claims reimbursement and the procurement of essential medicines.

Highlights

According to the approved disbursement formula, GH?2 million has been allocated to provide financial assistance to underprivileged patients—specifically those under 18 and above 60—suffering from kidney disease and undergoing dialysis treatment. Additionally, GH?6.56 billion will be directed towards the payment of claims in 2025, while GH?1.23 billion has been set aside for the National Health Insurance Authority (NHIA) operational expenses. A further GH?124 million will support NHIA district offices, and GH?984 million will fund the Ministry of Health. Moreover, GH?125 million will be dedicated to district health projects, GH?188 million to the biometric ID card and authentication system, and GH?111 million to claims processing centers, among other initiatives.

kept commitment

Speaking to the press after the meeting, Minister of Health, Kwabena Mintah Akandoh, stated that the increased budget allocation to the National Health Insurance Authority (NHIA) fulfills President John Dramani Mahama’s promise to uncap the National Health Insurance Fund (NHIF) in the 2025 budget.

He explained that the formula allocated approximately GH?6 billion in 2024, but following the uncapping, the fund has now been increased to GH?10 billion. The additional amount will cover free primary healthcare, bridge the significant funding gap resulting from withdrawing donor support to the health sector, and support the Ghana Medical Trust Fund, known as the Mahama Cares initiative.

Under the free primary healthcare plan, Mr Akandoh stated that any Ghanaian who falls ill can seek medical treatment at any health center without cost. He acknowledged that withdrawing support from international donor partners, including USAID, has created a significant financial shortfall in the health sector. “Therefore, revenue to be generated as a result of uncapping the NHIF will go to fill the gap,” he said.

He further explained that a percentage of funds from the NHIF will be directed towards financing the Mahama Cares initiative through the Ghana Medical Trust Fund.

Dialysis treatment

Regarding dialysis treatment, Mr Akandoh recalled that the 2024 formula allocated GH?2 million for treating individuals with renal issues who were below 18 and above 60 years. However, he pointed out that this formula expired on December 31, 2024, leaving no policy in place for continued dialysis funding. “That formula died on December 31, 2024; so, beyond that, there was no policy in place for dialysis.

Now, with this formula, what we have done is that we have included dialysis as part of the benefit package of the National Health Insurance Scheme, just like malaria or any other disease. So, the policy direction is that we are going to fund the dialysis issues in this country,” he said.

Despite this commitment, Mr Akandoh emphasised that the Mahama Cares Fund would specifically focus on addressing chronic non-communicable diseases. “And so, any of these diseases that have not been captured by NHIF will then be captured by the Mahama Cares because we all know that about 45 percent of our mortality is attributable to non-communicable diseases, and as a country, we need to urgently find a solution to it, especially at this critical time when our donor partners are withdrawing their funds,” he said.

Call for Accountability

Following the uncapping of the National Health Insurance Fund (NHIF), Dr. Asare Bampoe has consistently emphasised the need for greater accountability and the judicious use of funds to strengthen the National Health Insurance Scheme (NHIS), improving both provider and customer experiences.

He explained that this commitment informed his decision to prioritise the implementation of robust internal controls, ensuring that allocated funds are used efficiently and for their intended purposes. He further cautioned that with increased financial inflows, there must be heightened transparency and strict financial oversight to maintain public trust and sustain the effectiveness of the NHIS.

Background

During his budget presentation in Parliament on March 11, 2025, Minister of Finance Dr. Cassiel Ato Forson announced the uncapping of the NHIF, stating, “Mr. Speaker, we have uncapped the National Health Insurance Fund (NHIF).” He outlined that an amount had been allocated for the National Health Insurance Scheme (NHIS) to cover claim payments, essential medicines, vaccine payments, free primary healthcare, the Ghana Medical Care Trust (Mahama Cares), and to bridge the USAID financing shortfall.

In a March 11, 2025, statement, NHIA CEO Dr. Victor Asare Bampoe described the decision as a landmark policy fulfillment, aligning with the government’s commitment to ensuring sustainable and accessible healthcare for all Ghanaians. He explained that uncapping the NHIF would provide more funds to enhance healthcare services, expand coverage, and improve efficiency within the NHIS. “This move also fulfills a key campaign promise and demonstrates the administration’s dedication to healthcare reform and universal health coverage,” he said.

In light of the increased funds flowing into NHIS due to the uncapping of the levy, Dr. Bampoe outlined a comprehensive vision focused on enhancing transparency, strengthening internal controls, and ensuring judicious spending.

Source: DOREEN ANDOH