Dr. Dan Armooh, the Chief Executive Officer of Acacia Health Insurance Limited, has noted that the high cost of capital is thwarting the growth of the private health insurance industry in the country.
According to the CEO, some private health insurance companies had collapsed due to financial difficulties. Dr. Armooh, however, indicated that cheap capital would help the industry to flourish.
“The prospects of the private health insurance industry are huge and bright since insurance penetration in the country is generally low. The private health industry should be supported financially to thrive.”
Dr. Dan Armooh
Dr. Armooh averred that the current arrangement where the National Health Insurance Scheme takes a chunk of all health insurance businesses is hampering the growth of the private health insurance industry.
“Until the NHIS shrunk its services and ceded some of the services for the private sector operators, the private health insurance companies will continue to suffer.”
Dr. Dan Armooh
Turning his focus on Acacia Health Insurance, a member of the Enterprise Group, Dr. Armooh stated that in spite of the difficulties facing some private health insurance companies, his outfit is well-capitalized to meet its financial obligations. The CEO explained that the company’s capital adequacy ratio currently stands at 167 percent, which is well above the regulatory threshold of 150 percent.
“Although, the minimum capital requirement for players in the private health insurance scheme is GH¢5.4million, Acacia Health Insurance Limited, has a stated capital of GH¢18. 6million.”
Dr. Dan Armooh
Acacia Health Insurance Now A Full Limited Liability Company
Dr. Armooh intimated that his outfit which started about 10 years ago as Mutual Health Insurance Scheme and was operating without a profit motive, is now a Limited Liability Company.
Dr. Armooh disclosed that the company is currently serving more than 34,000 customers across the country. He added by saying, “Our vision in the next three years is to increase our membership to 60,000 and the long priority to achieve 100,000 membership”.
The Acacia Health Insurance CEO indicated that there are 14 private health insurance companies in the country with a total customer base of about 300, 000. Meanwhile, the company served clients in the mining, banking and finance, telecommunications, agriculture sectors, non-governmental organizations, foreign missions, and churches.
“Since Acacia’s inception, the company has paid more than GH¢182, 000,000, as claims. Acacia is one of the private companies which pays claims promptly. Acacia has almost 700,000 service providers across the country and with the company’s Identity Card, members could access health care in any part of the country.”
Dr. Dan Armooh
Touching on the future outlook of the company, Dr. Armooh said the objective is to deploy digital technology to serve clients well. “We want to build synergies with our service providers to better serve our clients,” he said.
Dr. Armooh moreover, disclosed that Acacia would by the end of the year, launch a new product to serve families and individuals. He iterated that the prospects of the private health insurance scheme were huge and bright.
The Project Coordinator of the Enterprise Group Communications and Synergy Department, Ms. Fahimah Nelson, on her part, explained that the interaction formed part of the ‘Advantage Seminar’ which started in 2021 and is held quarterly to discuss issues of public concern.
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