Britam pulled the plug on its three-year contract following a premiums dispute with the state agency.
KAA workers are set to directly seek medical services from hospitals.
The workers will now access health services from facilities such as Aga Khan, Mater and Avenue hospitals in Nairobi after KAA negotiated a direct relationship with the providers.
More than 2,000 Kenya Airports Authority (KAA) workers are set to directly seek medical services from hospitals without cover after insurer Britam #ticker:BRIT pulled the plug on its three-year contract following a premiums dispute with the state agency.
The workers will now access health services from facilities such as Aga Khan, Mater and Avenue hospitals in Nairobi after KAA negotiated a direct relationship with providers affected by the move.
Britam is said to have suspended the Sh950 million contract it entered with KAA two years ago over an extra Sh94 million that the insurer wanted to be paid, contrary to the initial agreement.
“Britam asked for major variations of the terms of the contract including higher premiums. The two parties did not agree on terms of the contract leading to the suspension of the contract with Britam,” said KAA managing director and CEO Jonny Andersen in memo to KAA staff.
“We highly regret any disruptions that may ensue following this unprecedented situation. Please note that every action is being taken to resolve this matter and restore to normalcy of access to healthcare services. Under the circumstances, the management of Kenya Airports Authority promptly negotiated direct relationships with the hospitals affected to allow employees to access medical services. All our employees are able to access their medical benefits.”
Britam declined to comment on the matter.
KAA entered into a three-year contract with the Nairobi Securities Exchange-listed insurer in January 2017 to offer medical cover to its more than 2,000 employees.
The contract was also expected to cover KAA’s board members.
But early this year, Britam asked for major variations of terms of the contract which KAA had paid in full including higher premiums. KAA now says its members are free to seek health care services in other hospitals before entering into a deal with a new insurer. “They will also receive health care services in hospitals such as Elgonview in Eldoret, Mainmoon and Tawfiq hospitals in Malindi and at AAR insurance,” said Mr Andersen.
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