Global Advanced Research Journal of Medicine and Medical Sciences (GARJMMS) ISSN: 2315-5159
September 2017 Vol. 6(9), pp. 217-223
Copyright © 2017 Global Advanced Research Journals


Full Length Research Paper 

Failure of Capitation System in the Ashanti Region: A Wake-up Call to Reform the Health Insurance Scheme in Ghana

Enock Takyi

Eiriks Gate 3, 0650 Oslo, Norway. University of Oslo


Accepted 21 September, 2017


The National Health Insurance Scheme of Ghana, since its inception in 2003, has been grappling with escalating costs. The National Health Insurance Authority has been trying to address this problem by employing a mix of payment systems. The latest payment system adopted by the National Health Insurance Authority in its effort to cut down costs was capitation, which was introduced on pilot basis in the Ashanti Region in 2012. However, the capitation could not serve its purpose, and was consequently suspended in August 2017. This paper examines the factors that led to the failure of the capitation. This is done through a review of literature and news items, as well as information on the National Health Insurance Scheme website. I argue that the capitation failed mainly due to unaddressed moral hazard. This same problem threatens the sustainability of the entire insurance scheme. Thus, the failure of the capitation is a wake-up call to the National Health Insurance Authority to reform the whole insurance system.

Keywords: Capitation, Moral hazard, Full insurance, Price distortion, Cost sharing



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