What Government will contribute

Government will:

• Not reduce its contribution to health care as a result of NHIP
• Contribute almost half of the costs of National Health Insurance to ensure that contribution rates for the people of the TCI are affordable and equitable
• Continue to provide public health services and primary care on the Outer Islands
• Pay for care for indigents, prisoners, and the formally unemployed.
  

The Government's contributions allow NHIP to provide a full package of primary care, hospital services and outpatient specialty and diagnostic services for only 5% of wages or earnings, split evenly between the employer and employee.

NHIP will cost you only 2.5% of your wages.

Your contribution covers you AND your family. This means that if your spouse doesn't work, and you have children, they are all covered for full health care benefits for just 2.5% of your wages.

Your employer will contribute an additional 2.5% so that the total contributions between employers and employees will be 5%.

COST TO EMPLOYEES AND EMPLOYERS

Here are some examples showing costs of NHIP to different persons:

"Dolores",* the Waitress
Dolores works for a resort as a waitress, making $1200 per month. She has two children. Her employer would deduct $30 (2.5%) from her paycheck every month for her NHIP contribution. Her employer would contribute another $30 (2.5%) to make up the full contribution of 5%. This would provide her with full health care benefits for herself AND her children.

"Margaret",* the General Manager
Margaret is the general manager of ABC Company and makes $10,000 per month. Her employer would take out $195 (2.5% up to ceiling of $7800) from her monthly paycheck to cover her share of the contributions. Her employer would contribute $195 to make up the full contribution of 5%. She would have full health care benefits for herself and her family.

"Mark",* the Sanitation Worker
Mark is a Government sanitation worker on South Caicos. He makes $800 per month. The Government as his employer would deduct $20 (2.5%) from his paycheck every month for his NHIP contribution. The Government (as his employer) will contribute another $20 (2.5%) to make up the full contribution of 5%. This will provide full access to health care benefits for Mark and his family.

"Juan", * the Laborer
Juan works in construction and is single. He makes $8.00 per hour, which gives him a monthly wage of $1280. The construction company, as his employer, would deduct $32 (2.5%) from his paycheck each month to cover his NHIP contribution. His company would contribute an additional $32 (2.5%) to make the full contribution of 5%. This will provide full access to health care benefits for Juan.

*not real names

Very low contributions compared with other countries

The contribution of 5% of wages is much less than is paid in other countries for similar health insurance plans. (see chart)

Actuarial calculations show that to keep the contribution rates as low as possible for everyone, the ceiling on wages will have to be higher for health insurance than it is for the National Insurance Board. This is what happens in all countries. The International Labour Organization (ILO) which guides social security plans suggests that ceilings for health insurance be set at three times the ceiling of pensions. This guideline has been adopted by other countries around the world to ensure that national health insurance is sustainable.

COST TO SELF-EMPLOYED

As in all countries, the self-employed will pay equivalent to the combined contributions of the employer and the employee because they will receive the same comprehensive package of services. The premium for self-employed persons is proposed at $250 per month. However, if you are self-employed and you believe that your premium would be less if you reported your income, you would be allowed to show proof of income and be subject to a lower premium.

"Marie", *The Hairdresser

Marie owns a hairdressing salon on Providenciales. She makes $6000 per month. Marie will have to contribute $250 every month to NHIP. This will provide full access to all health care benefits for Marie and her entire family. Marie's contribution is less than 5% of her total wages.