Bill cuts penalties for late remission of NHIF premiums

Penalties for late payments to the National Hospital Insurance Fund (NHIF) will be reduced and a representative of county governors given a seat on the board of the public health insurer if a proposed law is adopted.

Amendments to the NHIF Act propose that defaulters start paying a penalty equivalent to twice their monthly contribution for every month in default, down from their current five times of their monthly premiums.

The Bill comes two months after employed workers started paying higher monthly premiums of up to Sh1,700 based on their income levels, a departure from the fixed Sh320.

“The penalty as imposed by the Act has been a deterrent to defaulters who may wish to continue remitting payments to the fund,” says the Bill.

The proposed law says the inclusion of governors’ representative on the NHIF board is informed by the fact that health is a devolved function and that the fund largely provides medical services through hospitals managed by county governments.

Currently, the NHIF board comprises three senior government officials, a chairperson picked by the president and private sector representatives from institutions like the Kenya Medical Association, Federation of Kenya Employers, the Central Organisation of Trade Unions and the Association of Kenya Insurers.

The NHIF Act stipulates that an employer who fails to remit contributions of their employee’s to the fund will settle the penalties.

READ: Top private hospitals missing in NHIF list

Contributors whose remissions to the fund are due when they are abroad are supposed to start paying them on the day they return to avoid penalties.

NHIF’s new monthly fees came into effect at the end of April and require those earning Sh5,999 to pay Sh150 monthly — the lowest deduction.
Those earning Sh100,000 and above make a Sh1,700 monthly contribution or 431 per cent rise.

NHIF members earning between Sh50,000 and Sh59,999 are now remitting Sh1,200 to the enhanced benefits scheme while the self-employed are paying Sh500 up from Sh160 a month.

The pooling of cash is part of the government’s strategy to achieve universal healthcare by ensuring both poor and rich households access medical care that is often out of reach for the majority of Kenyans.

Unlike the past where the NHIF only paid for inpatient services, Kenyans will from July access outpatient services in addition to inpatient care in the facilities that are divided into three categories.

The fund first published a list of 1,500 accredited health service providers across the country on May 19 which included top private hospitals like Nairobi, Aga Khan, Mater, MP Shah and Gertrude’s. But the list published this week excluded the top private hospitals.