govt on the spot over NHIF rates

Written By:Collins Anampiu , Posted: Wed, Aug 18, 2010

The government has been asked to explain the rationale behind the increase of monthly contributions to National Hospital Insurance Fund.

Ikolomani MP Bonny Khalwale Wednesday requested a ministerial statement from Medical Services Minister prof, Anyang Nyong'o on the matter.

The legislator also sought to know if the minister consulted widely with various stakeholders following opposition by the Kenya Civil Servants Welfare Association (KCSWA) and other groups.

The new rates which will see the highest paid employees' part with 2,000 Shillings have not been well received by employees in the public and private sector.

Khalwale also wanted a breakdown of the contributions from all its members as well as how the new rates will change health care service in the country.

He questioned the government's intention to introduce universal health care, in a society with a wide social and economic disparity.

The government has already gazette the new premiums which Khalwale has requested the ministry of medical services to recede the decision.

Nyong'o has however defended the proposals saying that the new premiums will help the public health insurer successfully roll out its outpatient cover countrywide.

The Central Organisation of Trade Unions (COTU) has already moved to court to block NHIF from "interfering, enforcing or implementing" the new rates until the case is heard and determined.

Two health consultants Mr Kiriro Wa Ngugi and Ms Diana Patel, have also enjoined themselves in the suit. The industrial court is set to hear the case this Friday.

Healthcare lobbyists have opposed the new rates saying the decision by the public health insurer was ill-advised and arrived at without consultations.

In the new NHIF rates to take effect next month, those earning more than 100,000 Shillings will pay 2,000 Shillings per month, representing a 600 per cent increase.

Those who earn less than Sh6,000 will pay Sh150. In addition, those who are self-employed will pay Sh500, while those who volunteer to contribute will part with Sh300.

The current monthly remittance to NHIF for the highest salaried employee is Sh320, while those earning less than Sh6,000 pay between Sh30 and Sh120.