The National Hospital Insurance Fund (NHIF) is feeling the heat of the harsh economic times after it failed to achieve its target for the year ended June 2022.
According to the latest NHIF data, the insurer missed collecting Ksh. 90.57 from premium collections, as the number of dormant members shot to 8.8 million from 5 million the year before.
The insurer linked the surge in defaulters of the premium payments to hard economic times, where some members left their jobs hence the inability to make the contributions.
“The target was not achieved due to macro-economic factors in the country, which caused companies to downsize, reduce salaries and some to close,” said NHIF.
In addition, a significant number of members from the informal sector who make contributions voluntarily were also affected by the economic crisis, which has the inflation rate settle at 9.5% in December 2022.
“The informal sector has also faced financial challenges caused by the poor economic conditions, thus making it difficult for members of this sector to make their voluntary contributions to the fund and adverse selection,” said NHIF.
Despite the woes facing the body, the year under review saw an increase in registered members from 13.94 million the year before to 15.4 million.
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