The landmark Universal Health Insurance Act of 2023 (UHA) was recently signed into law, mandating that all residents have at least a minimum level of health insurance coverage. Only about 15% of Tanzanians had some form of health insurance at the end of 2021, 8% of whom were covered under the National Health Insurance Fund (Ministry of Health data). Health insurance accounts for about 12% of total spending on healthcare, while out-of-pocket, government and donor spending account for 34%, 24% and 32%, respectively. The UHA will take effect on a date to be announced by the government, followed by a transition period of up to 18 months.
Most companies operating in emerging markets offer some form of private medical insurance (PMI) or medical services, due to a combination of the limitations of the public healthcare system and employers wanting to ensure that their staff (and usually dependent family members) have prompt access to medical care. The option to offer PMI in lieu of the state-mandated scheme is thus welcome. Employers that do not already provide private health insurance for their employees should prepare to meet the cost resulting from this new mandate.
