Top earners to pay more to NHIF in proposed new regulations

Proposed regulations by the National Health Insurance Fund (NHIF) to impose a penalty on those who fail to register as members as well as increasing deductions on top earners has elicited a backlash from Kenyans around the country.

The Federation of Kenya Employers, COTU and private health sector players say the regulations will aggravate the bad healthcare situation Kenyans find themselves in.

This as the proposed regulations are NHIF’s way of increasing its funding pool to support the government’s pet project; Universal Health Coverage (UHC).

In one among the five sets of draft regulations proposed by NHIF, the national insurer states that: “A person who does not register as a member commits an offence and shall, be liable to a penalty not exceeding twenty thousand shillings.”

This penalty has not gone down well with a section of Kenyans.

Joseph Okech, a resident of Nakuru, said: “Sijaregister juu sina uwezo…hapa base ata kupata mia mbili ni shida.”

Julius Kimanyegemi, a resident of Kisii, posed: “Walikuwa na lengo gani kuu? Ni kusaidia mwananchi? Na kama ni kusaidia mwananchi basi imefikia wapi hapo ambapo inasema kwamba mwananchi mwenye hana apate kupewa fine ya elfu ishirini?”

Their sentiments were echoed by players in the health sector as well as workers trade unions who state that NHIF should consider sensitizing Kenyans on why the health insurer is the best option.

Dr. Timothy Olweny, Secretary General, Kenya Association of Private Hospitals, said: “I think the key here is for NHIF to deliver on that promise so that people join voluntarily as opposed to enforcement because it is not realistic.”

COTU boss Francis Atwoli, on his part, stated: “If there is scarcity in the country how do you want to devastate the cost of living more than what it is today?”

The proposed regulations will allow the national insurer to utilize the existing National Population database linkages for purposes of mobilizing registration to the fund.

The penalty is however not the only contentious issue in the proposed regulations, NHIF is also seeking to increase its pool of financing by raising the deduction premiums for those earning Ksh.100,000 and above.

These category of persons will be deducted 1.7% of their gross salary; this being a higher premium away from the maximum contribution that is capped at Ksh.1,700.

“It is a responsbility of the Kenya government to provide healthcare for all, but this is not to come from Kenyans’ or working people’s pockets…it was meant to be through government budget allocation in Parliament…it is debated and then that portion is taken to NHIF,” added Atwoli.

The Federation of Kenya Employers, in a statement to newsrooms, said the proposed move is bad for the country, bad for jobs and bad for the enterprises; and that the rates will also increase the cost of the wage bill.

Kenya intends to attain UHC and its sustainability predominantly through domestic financing, with the primary sources being tax funding and health insurance contribution.

The Ministry of Health once termed it as a situation where the employed will support the unemployed to access health services without much strain.

NHIF will concurrently conduct public hearings for stakeholder engagements between 23rd February and 9th March, targeting county governments, development partners, employment and employer associations, health regulatory bodies and their associations as well the parliamentary health committee.