Lobby group opposes new NHIF rates

Healthcare lobbyists have opposed plans to increase contributions to NHIF, saying the decision was ill-advised and arrived at without consultations.

The new rates are way below those offered by private health insurance providers for similar services, said the Kenya Healthcare Federation, adding that it would go to court to stop implementation.

The association comprises organisations such as GlaxoSmithkline, Britak, Avenue Healthcare, Nairobi Hospital, Gertrude’s Children Hospital and Karen Hospital.

The Kenya Healthcare Federation said it was considering court action to stop the National Health Insurance Fund from implementing the planned increment of premiums—threatening the roll-out of a key reform that was expected to lead to pricing war in the healthcare insurance industry.

The association said there should have been more consultations before the NHIF announced the new rates that are already gazetted.

“We are considering legal advice on the way forward,” said the association’s Chief Executive Officer, Dr Amit Thakker.

The body, which is part of the Kenya Private Sector Alliance (KEPSA) opposes the increment because of various factors, including concerns that the NHIF may not have the capacity to offer outpatient and additional medical services that is has promised.

It also wants the NHIF to release results of a pilot study that was done in Nairobi and Mumias on outpatient services, saying the health insurer should have waited for the organisational audit being financed by the International Finance Corporation before it implements any reforms.

But NHIF chief executive officer Richard Kerich said the decision to increase the rates was agreed a early as 2008 in a meeting by among others, NHIF, Kenya Healthcare Federation and the Ministry of Health.

“We have planned a meeting with KEPSA and the United Business Association and I am sure we shall find a common ground on the issues in contention,” said Mr Kerich.

But he added that the Fund cannot release the results of the pilot study to KEPSA because some of its members are direct competitors of the NHIF.

The private sector is represented in the NHIF board by the Association of Kenya Insurers, the Federation of Kenya Employers and the Kenya Medical Association which must all approve the new rates.

The NGO Council is also a member of the board.

But Kenya Healthcare Federation said here has been “internal issues” that prevented their representatives on the board from agreeing on a common position regarding the new premiums.

The premiums will see minimum contribution increase from the current Sh320 a month to Sh2,000 a month for people earning a monthly gross salary of Sh100,000 and above.