NHI financial position at $11.5 million at year end
By: L.N. Reklai
(Koror, Palau) Palau’s National Health Insurance (NHI) program is showing a positive financial position at the end of FY 2016 with $11.5 in net assets. Of this, $8.5 million is in investments and reserves, $2 million is in receivables, $1.3 million in cash assets and $16 thousand is in fixed assets. [restrict]
Of the total $8.5 million in investments, $3.167 million is NHI investment and $4.829 is MSA investment. The NHI investment can be used when needed to support the program should it need financial subsidy, but MSA investment are savings from individuals that cannot be touched by the program for anything except to pay back individual’s MSAs.
According to the program’s statement of revenue expenditures, the 2016 income reached $8.7 million. The program’s annual total expenditure was $5.3 million leaving a net revenue of $3.3 million. Of the total $8.7 million revenue, benefit payments to NHI and MSA totaled $4.8 million.
Despite year end positive financial position, NHI’s financial reserves represent one year operating expense of the program.
Financial viability of the program continues to be of concern to the Health Care Governing Board and a draft policy and regulation is being reviewed in an attempt to manage the program sustainably according to NHI Administrator Ulai Teltull. [/restrict]