The National Hospital Insurance Funds (NHIF) has issued a new warning barely a month after President Uhuru Kenyatta dismissed new propositions to govern the insurer's service provision.
A report published by the Daily Nation on Monday, January 10, indicates that the insurer has sounded warnings that unless the rates they proposed on January 9, 2020, were implemented, the scheme would collapse in the next two years.
These claims were brought to light by a report by the Health and Financing Reforms Expert Panel (HEFREP) which had been sanctioned by the Health CS Sicily Kariuki to transform and reposition the NHIF taskforce.
The task force reported that if the factors remain as they are, then the operations of the insurer would not be tenable in the next two years, with deficits expected to be recorded before 2020 is over.
The taskforce further indicated that the situation was escalated by several counties failing to remit their payments as was due to the insurer.
"Several county schemes also default on their premium payments. Given the trend in the growth in premiums and claims, when future revenues and claims for the county schemes are projected, claims will outstrip revenues by 2026 making the schemes unsustainable," the task force reported.
Health Principal Secretary Susan Mochache, appearing the Committee on Health in the National Assembly indicated that while the premium contributions had increased three-fold, benefit payouts have increased five-fold over the same period.
"The health financing reforms expert panel, therefore, recommend that given the recent volatility in NHIF claims experience, it is important that the fund's solvency position be monitored closely," Mochache stated.
The NHIF on January 9, announced new rates that they hoped would see the fund cut costs and boost revenue.
Amongst some of the changes were that it would cover only one wife and five children, increased membership waiting time to 90 days and a fine of 50% of monthly contribution and in the case of late remittances.
These, alongside other measures, caused an uproar amongst Kenyans leading to President Uhuru Kenyatta to direct the Ministry of Health to immediately suspend the recommendations to allow for further consultation.
