The National Hospital Insurance Fund (NHIF) has abandoned its proposal to increase monthly contributions for employees making more than Ksh100,000, relieving financial strain on high earners and their employers.
In response to a parliamentary petition protesting the proposed rise in monthly contributions for top earners, the State-backed health insurer agreed to maintain the current monthly prices.
NHIF had previously published fresh regulations that stated employees making more than Ksh100,000 per month would contribute 1.7 percent of their gross wages to the fund representing a change from the current model, under which employees making more than Ksh100,000 pay a fixed Ksh1,700 monthly contribution.
Read: 7 Million NHIF Members Risk Losing Cover Over Huduma Namba
If the requirements were to be implemented, contributions from employees making Ksh200,000 would climb to Ksh3,400, while those making Ksh500,000 would see their monthly obligations increase five times to Ksh8,500.
The Kenya Healthcare Federation (KHF)-led lobbying groups rejected the proposed hike, claiming that rates ought to be based on things like age, prior medical history, occupation, and smoking habits.
Once the NHIF gazettes the regulations, which are being reviewed by Parliament and will serve as the new law’s guidelines and which called for mandatory membership, are in place, the modifications will be put into effect.
The mandatory NHIF membership is an improvement over the previous program, which merely required workers in the formal sector to enrol. NHIF offered informal workers the option to join or leave, with a monthly contribution of Ksh500. Their recurring monthly charge however does not change. Additionally, the Ksh20,000 fee for adults who fail to register has been eliminated under the new rules.
NHIF had 10.6 million members in the fiscal year that concluded in June 2021, according to data but by the end of August of that same year, 5.7 million of those members (54%) had stopped making contributions as a result of the coronavirus-caused layoffs and pay reductions.
Email your news TIPS to editor@thesharpdaily.com
