A joint sitting of the National Assembly and Senate listen to President Uhuru Kenyatta delivering his State of the Nation Address at Parliament buildings on November 30, 2021. PHOTO | JEFF ANGOTE | NMG
The National Assembly Committee on Health approved the amendments setting the stage for passage of the Bill into law today when MPs resume special sittings.
A review of the rates every two years will increase NHIF’s funding pool to match the rise in treatment costs.
Senate reduced the fine on NHIF fraudsters from Sh1 million and a jail term of two years set by the MPs sparking fears of a push and pull battle between the two houses that would derail passage of the Bill.
MPs have backed the Senate on changes to the NHIF Act paving the way for a review of the rates every two years and a Sh100, 000 fine or six months in jail for fraudsters impersonating to use the State insurance’s cover.
The National Assembly Committee on Health approved the amendments setting the stage for passage of the Bill into law today when MPs resume special sittings.
A review of the rates every two years will increase NHIF’s funding pool to match the rise in treatment costs but a reduction of the penalty for fraudsters looks set to hurt efforts to stem a vice that bleeds the insurer Sh16.5 billion annually.
Senate reduced the fine on NHIF fraudsters from Sh1 million and a jail term of two years set by the MPs sparking fears of a push and pull battle between the two houses that would derail passage of the Bill.
“The Committee having considered the Bill recommends that all amendments as proposed by the Senate be passed,” the committee says in its review of the Senate proposals.
MPs will debate and vote on the recommendations today when the house resumes special sittings to pass critical Bills that include the NHIF (Amendment) Bill, 2021.
Amendments to the NHIF Act form a key plank of President Uhuru Kenyatta’s bid to roll out universal healthcare for that will also make memberships compulsory for all Kenyans aged above 18.
The State insurer last reviewed its rates in April 2015 and increased monthly contributions for formal workers from Sh350 to a graduated scale of up to Sh1, 700 based on pay.
NHIF has been grappling with the rise in claims paid and an increase in cases of impersonation against a marginal increase in annual contributions.
Claims have more than doubled in the past five years from Sh19.7 billion in the year to June 2016 piling pressure on NHIF’s cash pool. The insurer paid out Sh54.6 billion or 88.7 percent as claims to hospitals in the year ended June.
The growing strain on the insurer’s books prompted plans to cut benefits in a cost-cutting move that if approved will see NHIF save up to Sh3 billion annually.
