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Proposal of Social Health Insurance would require to increase State Budget devoted to Health 4-fold - P4H Network

Proposal of Social Health Insurance would require to increase State Budget devoted to Health 4-fold

A proposal for the implementation of a Social Health Insurance (SHI) was prepared for Mozambique. The consultancy, commissioned by ILO, proposed to deepen the preventive character of the National Health Service, to reinforce primary levels and to head towards international benchmarks in selected indicators.

The financial proposal includes the creation of a payroll tax to cover the expenses of the SHI, payable both by civil servants and the formal economy, which currently account for a 20% ot the labor force, and are expected in the document to account for 50% in the coming years. The other 50% of the population would be covered by the State Budget.

The budgetary effort of the State should be increased 4-fold, from 21.933 to 89,347 M Mzn or from 353 MUS$ to 1.441 M US$ in nominal terms.

The Council of Ministers passed a declaration proposing the creation of a SHI in December 2017. Different features of such a proposal are being studied.