Compare: Funding

Joint Learning Network for Universal Health Coverage

The Joint Learning Network for Universal Health Coverage systematically documents the reforms of its member countries and other countries that have expanded health coverage through demand-side financing. The case studies contained in these pages are brief, comparative and modular in nature, describing the key highlights and technical features of each program.


Compare various dimensions of country reform efforts using our interactive tool.


Program Primary source of funding Secondary source of funding Contributing Populations Types of Contributions Funding
Kyrgyz Republic: Mandatory Health Insurance Fund (MHIF)
  • Payroll Tax
  • General government revenues
  • Formal Sector
  • Government Employees
  • Informal Sector
  • Co-payments

Premiums for the Mandatory Health Insurance Fund (MHIF) are paid by different entities depending on the status of the enrollee. The payroll tax is set at 2% for those employed and is payable by employers. Farmers pay 5% of their land tax as their contribution to the health fund. Finally, pensioners and the unemployed have their contribution paid for by the pension and unemployment insurance funds. This contribution equals 1.5 times the minimum wage. The MHIF is the sole purchasing agency for health services within the Kyrgyz health system.

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Premiums for the Mandatory Health Insurance Fund (MHIF) are paid by different entities depending on the status of the enrollee. The payroll tax is set at 2% for those employed and is payable by employers. Farmers pay 5% of their land tax as their contribution to the health fund. Finally, pensioners and the unemployed have their contribution paid for by the pension and unemployment insurance funds. This contribution equals 1.5 times the minimum wage. The MHIF is the sole purchasing agency for health services within the Kyrgyz health system.

Table 2: Population coverage and funding sources

Population groupPayroll tax rate, base and sourceComment
Employed population groups
Employees in formal sector2% payroll contribution by employerThere is an upper limit on contribution payments: earnings exceeding 120-times the monthly minimum wage are not subject to payroll tax payments (i.e., earnings portions above 12,000 soms)
Civil servants and public enterprises2% payroll contribution by employer
Self-employed2% of total enterprise income
Private farmers5% of land tax (only after 2001)
Non-employed population groups
Pensioners1.5x minimum wage from pension fun to MHIF
Registered unemployed1.5x minimum wage from unemployment fund
Children under 16 and students under 18Republican budget
Persons receiving social benefitsRepublican budget

Source: Jakab, M.

Copayments are regulated in the State Guaranteed Benefits Package (SGBP). The SGBP was the primary instrument used to address the problem of informal payments. Copayments were introduced in two oblasts starting in 2001 and were henceforth expanded gradually to the entire country through 2004, when all oblasts conformed to the same system. The destination of the copayment revenues is regulated; 20% can go toward complementing personnel salaries and 80% must go towards inputs such as medicines, supplies, and food. The majority of copayments are used for the purchase of medicines and supplies, functioning as additional revenue for hospitals to fund their variable costs. Copayments vary with insurance status, exemption status, case type (delivery, surgery, medicine), and referral status.

Populations with high expected use of the health care system qualify for two copayment exemptions. The first is based on social characteristics and was intended to target vulnerable groups such as war veterans, the elderly, and the disabled. The second is based on groups with certain medical conditions with high externalities such as tuberculosis, AIDS, syphilis, and polio. Both of these groups are exempt from any fees. Hospitals are also required to set aside 10% of all copayment funds in order to cover services for the very poor that are uninsured. This process was initiated voluntarily by health providers to support the most vulnerable populations.

Ghana: National Health Insurance Scheme (NHIS)
  • General government revenues
  • Payroll Tax
  • Member contributions
  • Donor funding
  • Formal Sector
  • Government Employees
  • Informal Sector
  • Premiums

The NHIF is financed from several different sources. Approximately 70% of total funding comes from a health insurance levy added to VAT, 23% comes from contributions made by formal sector workers to the Social Security and National Trust (SSNIT), and 5% comes from Premium payments. Members do not pay deductibles or copayments when accessing health care.

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The NHIF is financed from several different sources. Approximately 70% of total funding comes from a health insurance levy added to VAT, 23% comes from contributions made by formal sector workers to the Social Security and National Trust (SSNIT), and 5% comes from Premium payments. Members do not pay deductibles or copayments when accessing health care.

Each funding source is described in further detail below:

  • A 2.5% health insurance levy added to VAT
  • 2.5% of the 17.5% Social Security and National Trust (SSNIT) contribution made by formal sector employees (the 17.5% contribution is made up of a 12.5% contribution from employers and 5% contribution from employees)
  • Member premiums of between 7.20 to 48.00 Ghana cedis annually (USD5.00 – USD34.00)
  • Money that accrues to the fund from investments made by the NHIC Other:
  • Funds allocated to the scheme by the Government of Ghana via Parliament
  • The central exemptions fund, formerly used to provide exemptions from user fees for those classed as ‘indigent’
  • Donor funds (few details on these donor funds are available)

The NHIS is a hybrid of social and community based health insurance models. The basic structure of the NHIS is described as a “hub-satellite” model. The “hub” of the system, which is essentially based on the SHI model of pooled public tax resources, is the National Health Insurance Fund (NHIF) which is administered by the National Health Insurance Authority (NHIA). The “satellites” are a country wide network of CBHI schemes known as District Wide Mutual Health Insurance (DWMHI) schemes which are monitored, subsidized and re-insured by the “hub.”

The table below presents estimates and projections for the composition of NHIS income from 2008 to 2018.

200820092010201120122018
SSNIT members58.8659.5176.8294.41117.86327.03
Health insurance levy176.56213.64256.37302.52352.44836.70
Insurance premiums (DMHIS)13.0520.8927.5335.7745.63171.46
Investment income5.5348.5351.0449.5645.070.00
Other income0.050.050.070.080.090.24
Total254.05342.63411.94482.76561.991,335.43

At present, employers are not held to anything in terms of contributions other than ensuring the necessary SSNIT deductions are made from the payrolls of formal sector employees. However, the NHIC has apparently made it known that it would prefer employers to contribute a sum equal to that of the employee’s contribution.

The NHIA has set the DWMHI annual premium levels at a minimum of 7.20 Ghana cedis and a maximum of 48.00 Ghana cedis (approximately $5-$34 in 2009) per adult member, to be determined by income status. The NHIA website states that this can be paid as a lump sum, or in 12 monthly installments (www.nhis.gov.gh). In practice, varying flat premiums are paid by districts across the country, with rich districts paying higher than poor districts.

The recent return to power of the NDC in the 2008/2009 elections may signal a significant change in the premium structure, however. The new government is considering the possibility of instituting a one-time premium that would guarantee access to the NHIS for life. Although no definite figures have been given as yet, rumor has it that the life time premium may be in the range of 150 Ghana cedis (just over $100), although the figure of $10-12 is also heard.

Nigeria: National Health Insurance System
  • Employer contributions
  • General government revenues
  • Member contributions
  • Formal Sector
  • Informal Sector
  • Premiums

The National Health Insurance Scheme (NHIS) is funded primarily by contributions from members based on income. For the Formal Sector Social Health Insurance Program contributions are premiums that make up 15% of an individual’s basic salary, with the employer contributing 10% while the employee pays 5% for coverage of themselves, their spouse, and up to 4 children. An employer may negotiate with an HMO for coverage of additional supplementary benefits and pay the extra contributions required. Participants in the Informal Sector Program are expected to make a monthly contribution based on the benefits package of their choice as well as other factors. The poor, elderly, veterans, and disabled are exempted from paying membership premiums.

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The National Health Insurance Scheme (NHIS) is funded primarily by contributions from members based on income. For the Formal Sector Social Health Insurance Program contributions are premiums that make up 15% of an individual’s basic salary, with the employer contributing 10% while the employee pays 5% for coverage of themselves, their spouse, and up to 4 children. An employer may negotiate with an HMO for coverage of additional supplementary benefits and pay the extra contributions required. Participants in the Informal Sector Program are expected to make a monthly contribution based on the benefits package of their choice as well as other factors. The poor, elderly, veterans, and disabled are exempted from paying membership premiums.

The funding structure of the Nigerian health system draws on colonial origins, when services were financed primarily by the central government. Currently, allocations from general government revenue comprise about 26.1% of overall funding, 6.1% comes from private organizations and 1.8% from development partners. Household out of pocket expenditures remain the largest source of financing, providing about 55.9% of total revenue.

India: Rajiv Aarogyasri
  • General government revenues
  • None
  • None
  • None

Aarogyasri is funded through general tax revenues generated by the state of Andhra Pradesh and the cost of premiums is fully subsidized for each beneficiary.

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Aarogyasri is funded through general tax revenues generated by the state of Andhra Pradesh and the cost of premiums is fully subsidized for each beneficiary.

The state chose to fully cover the cost of insurance premiums as the administrative costs of collecting the premium would outweigh the total cost of the premium itself. In addition, the state wanted to ensure that the benefits of the scheme reached the poorest, who might otherwise be deterred from enrolling even if the premium to be paid out-of-pocket was nominal.