Visitors to Kenya will soon be required to purchase local health insurance, irrespective of their stay duration.
This move is anticipated to have a significant impact on the insurance industry, which reported gross medical premiums of KES 22.2 billion in the first quarter of 2023, constituting 35.0% of the total gross premiums of KES 62.5 billion in the general insurance sector during that period.
The National Assembly Health Committee of Parliament is presently deliberating an amendment to the Social Health Insurance Bill 2023. This proposed amendment has the potential to benefit both the National Health Insurance Fund (NHIF) and private insurance service providers.
Furthermore, this proposed change is expected to shed light on the financial condition of the NHIF as it explores the introduction of Universal Health Coverage (UHC), an initiative endorsed by President William Ruto. This proposal aims to provide tourists with protection against unforeseen emergencies, including pandemics.
The initial phase of the Bill suggests mandatory membership for foreigners residing in the country for over one year. Kenya may adopt a model similar to Schengen countries, which require travelers to purchase travel health insurance for entry. Consequently, visitors who fail to meet these requirements may be denied entry into Kenya, mirroring current regulations in France, Germany, Austria, Belgium, Czechia, Croatia, and Denmark.
Approximately 1.48 million people visited Kenya for tourism purposes last year. The new insurance program will not only cover the cost of medical treatment for visitors but also provide treatment for pre-existing health conditions.
The Health Committee in Parliament has given its approval to four health Bills, including the Social Health Insurance Bill 2023, which may become law upon receiving President William Ruto’s endorsement. The other Bills in consideration are the Digital Health Bill of 2023, the Facility Improvement Financing Bill of 2023, and the Primary Healthcare Bill of 2023. These legislative proposals aim to improve healthcare services across the nation.
Next week, the Kenyan Parliament is expected to approve and pass new social health insurance bills. To prevent the financial challenges that have plagued the NHIF, contributions to the Fund will be mandatory, including those from foreign residents. Failure to provide proof of payment may result in the loss of access to government services.
Despite increased member contributions, the NHIF has struggled with hospital reimbursements due to a surge in claims and persistent fraud, leading to annual losses of billions of shillings.
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