Ghana Turns to NHIL Uncapping to Offset USAID Funding Cuts — Is It a Sustainable Solution?—Government has moved to address the $156 million funding shortfall caused by the suspension of the USAID programme by uncapping the National Health Insurance Levy (NHIL). According to Finance Minister Dr. Cassiel Ato Forson, this measure will generate GH¢9.9 billion ($700 million) in 2025, with GH¢4.2 billion ($300 million) allocated to the National Health Insurance Authority (NHIA) to help bridge the gap left by USAID’s exit.
The United States Agency for International Development (USAID) has been a key funding source for Ghana’s health and social intervention programmes, providing resources for maternal and child health, disease prevention, and rural healthcare access. The sudden withdrawal of $156 million in funding has raised concerns about the sustainability of these essential services.
President John Dramani Mahama has described the funding gap as a serious threat to healthcare delivery, particularly in underserved communities. Without immediate intervention, critical services such as immunization programs, malaria control, and family planning initiatives could face setbacks.
To counteract the USAID cut, the government has uncapped NHIL, ensuring that more funds flow directly into healthcare services. This move has freed up an extra GH¢4.2 billion ($300 million) for the NHIA, with officials confident that this amount will be sufficient to cover the USAID shortfall.
Total NHIL allocation for 2025: GH¢9.9 billion ($700 million)
Additional NHIL funds unlocked by uncapping: GH¢4.2 billion ($300 million)
USAID funding shortfall: $156 million
According to Dr. Forson, this reallocation will ensure continuity in healthcare service delivery and maintain key programs that were previously USAID-funded.
‘The National Health Insurance Authority will be receiving in total, an amount of GHC9.9 billion for the year 2025. This is because of the uncapping. The uncapping of the National Health Insurance Levy has made available additional resources worth GH¢4.2 billion to the National Health Insurance Authority. This is indeed enough for the National Health Insurance Authority to be able to include in their priorities, the funding gap as created by the USAID suspension.” He mentioned.
Will NHIL Fully Cover the Gap?
While the GH¢4.2 billion ($300 million) NHIL boost surpasses the $156 million deficit from USAID, the key concern is efficient fund utilization. Experts caution that healthcare costs are rising, and the NHIA will need to prioritize spending, delays in fund disbursement could impact service delivery and operational inefficiencies could limit the full impact of the additional funds.
Nonetheless, the government remains optimistic, emphasizing that NHIL uncapping provides a long-term financial buffer, ensuring stability beyond just replacing USAID’s contribution.
The USAID funding cut presents both a challenge and an opportunity for Ghana. While short-term adjustments are necessary, NHIL’s increased revenue stream could position the country towards greater self-reliance in healthcare financing. However, ensuring efficient fund management, transparency, and accountability will be crucial to maximizing the benefits of this fiscal policy shift.
Last Updated on March 21, 2025 by Senel Media
