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Negative impacts of NHI already seen– Nagico MD Shan Mohamed

- but said it's too early to tell true impact of the mandatory scheme on private insurance companies; said NHI should have focused on basic health coverage
Nagico CEO Shan Mohamed said people are finding it hard to maintain both private insurance and NHI. Photo: VINO/File
Mohamed said that it is always been the accepted position among professionals in the industry that whenever the NHI was fully implemented that the private insurance companies would see a significant reduction in their portfolio. Photo: VINO
Mohamed said that it is always been the accepted position among professionals in the industry that whenever the NHI was fully implemented that the private insurance companies would see a significant reduction in their portfolio. Photo: VINO
As the public comes to grips with the mandatory NHI, persons continue to express concern over the affordability of having both a private insurance coverage and the NHI. Photo: Provided
As the public comes to grips with the mandatory NHI, persons continue to express concern over the affordability of having both a private insurance coverage and the NHI. Photo: Provided
ROAD TOWN, Tortola, VI – Managing Director of Nagico Insurances Mr Shan Mohamed believes that it is yet too early to properly assess the true impact of the National Health Insurance scheme on the insurance sector.

Speaking during an exclusive interview with Virgin Islands News Online yesterday March 2, 2016, Mohamed expressed some of the concerns of his company with regards to the just implemented NHI.

As the public comes to grips with the mandatory NHI, persons continue to express concern over the affordability of having both a private insurance coverage and the NHI.

Mr Mohamed noted that most of the healthcare providers have not made any public statements as to whether they are having challenges. 

He said too that it is always been the accepted position among professionals in the industry that whenever the NHI was fully implemented the private insurance companies would see a significant reduction in their portfolio. “And that is exactly what has happened.” 

The Nagico Insurances Managing Director noted, however, that it is early days still and that some companies have kept their full plan for a few months just to ensure a smoother transition.

“So after those months have exhausted you will see a further reduction. It is simple maths... people will find it very challenging to make payments on the two policies.”

He said that some issues still remain unclear as NHI continues to work out the details of its benefits schedule which should become clearer within the coming months and that benefits offered under the NHI for dental and vision care are less than what the private insurers offered.

NHI should have provided basic health coverage

Mr Mohamed is of the view that the NHI should have been designed to offer a basic healthcare coverage at very affordable costs and the private medical market is what provides for the wider range of medical benefits as NHI should never be competing with private medical insurance's scope of benefits.

The private insurance companies had expressed reservations over the implementation of the NHI in the form it was, saying that it would lead to loss of businesses and loss of jobs in the private insurance sectors.

Government rejected the recommendations of the NHI Concerned Citizens and Residents Group and went ahead with the implementation of the scheme without addressing a range of concerns expressed.

However, it is this news site's understanding that the numbers for registration that the Government had expected have not been evident so far.

29 Responses to “Negative impacts of NHI already seen– Nagico MD Shan Mohamed”

  • pat (03/03/2016, 09:05) Like (10) Dislike (2) Reply
    who will hear will feel
    • the rock (03/03/2016, 10:10) Like (45) Dislike (0) Reply

      all the private insurers has to do now is lower they rates, they killed us for years now, come down on your expensive health coverage so others will follow u, don't just stand they and complain, its a business, see how low right way prices dropped since one mart started having they sales!

    • HMPH (aka "socal comantatatr" (03/03/2016, 10:58) Like (8) Dislike (0) Reply
      Me employer keepin a private polociy and sayin that NHI money is like throwing out cash everts month
  • wize up (03/03/2016, 09:10) Like (24) Dislike (20) Reply

    let the government make some of that money......just a few months ago maduro was complaining now Nagico.....when all of them making the money NO one complains....I was personally paying almost 1000.00 per month( for my family) now my payment is far better

  • De Man (03/03/2016, 09:25) Like (24) Dislike (3) Reply

    More people now has access to health care, that is positive.

    • @ De Man (03/03/2016, 22:16) Like (0) Dislike (0) Reply
      The hopes and aspirations of the working class become more opaque.
      One Love!
  • bvi (03/03/2016, 09:54) Like (23) Dislike (1) Reply

    Those private insurance companies are too greedy. They still have all the insurance on Houses, Vehicles, Boats, Life, and other personal assets. NHI is here to stay

  • please (03/03/2016, 10:50) Like (24) Dislike (3) Reply
    These insurance companies have raped us for years with the astronomical premiums, they have only themselves to blame for putting the cost of coverage beyond most people which resulted In the nhi
  • Huh? (03/03/2016, 10:51) Like (4) Dislike (7) Reply
    Note that:
    . The good sir did not highlight these negative impacts. It's all very vague. He himself said it was to early to call.

    . These impacts seem to be affecting the private firms. Not saying that it's a good thing, but what are the impact on the clients?

    . If its private firms or NHI, guess who rope buss. Again, that is awful. But as a business, how adaptable are you? Is health insurance the only offering in your portfolio? Is there absolutely no way to make this work in your favor without pressuring the people?
  • True (03/03/2016, 10:56) Like (4) Dislike (0) Reply

    next holiday is at a 4star hotel instaed of 5star luxury!

  • Chance (03/03/2016, 12:25) Like (19) Dislike (7) Reply
    Thank God for private Insurance I can go overseas and do all my medicals almost free. For a visit from the BVI doctors it is almost $200.00 and more and they are not fully equip to do a lot of things.

    You don't take away what people have and give them less at least not in this time and age where medical are so expensive.
    • wize up (03/03/2016, 14:51) Like (7) Dislike (8) Reply
      @ chance: the only thing that I personally do not like about NHI is it is mandatory; some persons had private insurance for a number of year and with the stroke of the pen that privilege is gone......
    • Seriously (03/03/2016, 15:56) Like (3) Dislike (1) Reply
      how much is your private insurance bill monthly?
      And you pay 12 months a year, right?
      So tell me again about your almost free medical care off island, my policy at Colonial said i had to be referred, off island.
      The great escape, never happened. . .
  • Marcus (03/03/2016, 15:13) Like (15) Dislike (6) Reply
    Both NHI and NDP must go
    • @ Marcus (03/03/2016, 22:11) Like (3) Dislike (0) Reply
      A very steep task ahead, one task at a time and done properly we shall achieve
  • Yes (03/03/2016, 16:49) Like (7) Dislike (0) Reply
    It's laughable to hear people talk about their private coverage and how they don't want NHI. Any new program on this scale will have bumps in the road that would need to be dealt with as time goes by. But remember most people who have private coverage is via the employer. What happens when you are laid off, then what? Do you think they will just tell you keep that coverage for old time sake?
    • wize up (04/03/2016, 05:45) Like (0) Dislike (0) Reply
      @ LOL: remember when social security was enacted, a number of people in the territory had so much things about the social security NOW social security is in the position where local governments can borrow millions of dollars in loans......
  • trrefdrfds (03/03/2016, 21:46) Like (0) Dislike (1) Reply
    It is time our government and our people tap into the insurance money versus the foreign investors. Keep the money in our economy.

    They have been crying "wolf" to scare people off. Go NHI.
  • Bla Bla (03/03/2016, 22:12) Like (1) Dislike (1) Reply
    Hush your blah. Does Nagico insure people with existing illness.? Go sit down. You made enough.
  • Relax (03/03/2016, 22:19) Like (1) Dislike (0) Reply
    The riches and the fame and the vehicle give always are no more... Lol. Relax.
    • wize up (04/03/2016, 05:52) Like (0) Dislike (0) Reply
      @ relax: well said for many year these companies lived fat on the hog, not one of them made any noise the money was sweet NOW that free money gone them balling.....dem were able to build big house and drive fancy cars for many years......let our governments make some of that money as the territory move ahead....
  • Charley Rose (04/03/2016, 07:15) Like (2) Dislike (0) Reply
    I do not subscribe to the statement by the insurance manager. What I am concerned about is the high cost of health care in the territory. I the coverage is too low for some procedures. however, the medical providers are exploiting the system as a result of their high cost of health care.
  • Curly (04/03/2016, 22:44) Like (0) Dislike (0) Reply
    Nhi is no different to private insurance. You pay a monthly amount and then you Co pay. Start using your nhi when you have a serious illness and you will see how expensive it is.
  • cay (05/03/2016, 15:53) Like (0) Dislike (0) Reply
    At the end only the poor ppl will suffer
  • The TRUTH (07/03/2016, 22:28) Like (0) Dislike (0) Reply
    The truth is that firstly, NHI has made health care available and affordable for everyone; and secondly, no one will be turned away for not having insurance. We will not longer have to pay up first and claim back later. Furthermore, citizens who are paying into NHI will not be in a situation where they pay into a private insurance account for years then claim benefits only to be denied.
    In direct response to Mr. Mohamed's comments - 1. Co-pay on dental care is less with NHI - that is a fact. And 2. There is no obligation on the part of the govt to create an NHI scheme that does not compete with private insurance companies, or is tailored to compliment private Insurance companies. The government's responsibility is to the people of the BVI and it is doing the best to provide affordable healthcare for ALL. National Health schemes work perfectly in the US and UK... and in other C'bean Is. Why not in the BVI. Give it time... it will work well for the people of the BVI... (I hope that Mr. Mohamed is registered by now and paying into NHI too!)


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