NHIF will increase salary deduction

In light of the revelation that the increased monthly deductions remitted to the National Hospital Insurance Fund (NHIF) many questions are being raised as to how the plan will affect citizens' earnings. The Director of the NHIF, Richard Kerich interviewed with K24 to explain the reason why NHIF deductions will in fact increase, as well as what Kenyans stand to benefit from the increment. Kenyans are among the most highly taxed people in the world, however, and an increase in NHIF deductions will cancel access to healthcare for many.

Ever since its inception, the NHIF has been deducting KES 320 from every employed person in Kenya, which pool of funds covers anyone needing in-patient services. In a few months time, however, this amount will increase, so the Director says, because it is the only way for the NHIF to provide better healthcare. The plan to review deductions came about after a sampling of current healthcare systems in Europe, America and Eastern Asia brought to light the need to upgrade NHIF provisions.

The increase in NHIF deductions may seem burdensome, however Mr Kerich assures us that the extra services that will be provided are guaranteed to benefit Kenyans. For the first time, your NHIF card will allow you:

-Out-patient services

-Unlimited consultations with doctors

-Facilitation in handing-over for conditions, for example, that cannot be treated at one hospital, to be treated at another

Further, for first time, a special package will be introduced to the system to cater for low income earners who cannot afford to pay for NHIF services. In this package, sponsors willing to pay for those who cannot will be given a chance to do so.

Naturally, to enjoy these services, there are conditions attached:

-Employed persons in the lowest income bracket (earning less than KES 6,000 per month) must part with KES 150, up from KES 120.

-Employed persons in the highest income bracket (earning over KES 100,000 per month) must now part with KES 2,000, up from the standard KES 320; while

-Self-employed persons must cough up KES 500, up from KES 160

The workforce should begin to see the dent in their incomes come end of September.