TANZANIA: Employers Must Pay for Compulsory Health Insurance

In this iPMI Global regional country guides article, iPMI report author and market analyst Ian Youngman, takes a look at news, that employers must pay for compulsory health insurance.

• After years of discussion Tanzania’s Universal Health Insurance bill was signed into law on 6 December 2023. This law protects the right to health services for all Tanzanians, regardless of ability to pay.
• The legislation was passed unanimously, reflecting a collective commitment to healthcare reform.

Compulsory health insurance for locals

• Tanzania is preparing to bring universal healthcare by compulsory health insurance under the Universal Health Insurance Act 2022.
• It provides compulsory conditions for people to have registered in insurance schemes to secure several social services.
• The Act imposes hefty penalties to an individual who contravenes the Act or a maximum jail term of not less than 12 months.
• 32% of Tanzanians have health insurance cover, including 8% who have subscribed to National Health Insurance Fund, 23% are members of Community Health Fund (CHF), while only 1% are members of private health insurance companies.
• All residents must have at least a minimum level of health insurance coverage, from the National Health Insurance Fund or from other approved providers.
• All employers must ensure that their employees have health insurance coverage.
• Employers must finance the costs of the cover chosen by their employees; private-sector employers may instead provide private health insurance for their employees.
• The aim is for all 61 million to have cover.
• The health insurance scheme includes a special fund for people living with non-communicable diseases like cancer and chronic kidney disease, ensuring access treatment that was previously out of reach for many Tanzanians due to its prohibitively high cost.
• This scheme will replace the previous system, the Community Health Fund (CHF).

Compulsory health insurance for expatriates

• All foreigners staying in the country for more than 30 days must have health insurance.
• Like citizens, there is the option to have NHIF cover or private insurance.

Employers

• Many already offer PMI or IPMI so they can still offer these.
• Employers are required to register their employees for health insurance within 30 days of employment commencement.

When?

• Implementation is scheduled to commence on July 1, 2024.

Health insurance market

• There are many global and local insures offering PMI and IPMI.
• They have a one-off opportunity to sign up locals and expats and employers with an alternative to state cover.

About the Author

Ian Youngman is an independent writer and researcher specialising in insurance. He writes regularly for a variety of magazines, newsletters, and on-line services. He publishes a range of market reports, and undertakes research for companies. To read his latest report, International Health Insurance 2023, please click here, or visit the REPORTS section of iPMI Global.