More than 240,000 teachers and their families will enjoy improved medical cover benefits for the next three years at a cost of Sh15 billion.
The highest paid teacher in job group R will now be entitled to an in-patient cover of Sh1.5 million, up from the current Sh1 million while the lowest Sh500,000 up from Sh300, 000.
Further, all teachers and their listed beneficiaries will continue to enjoy an unlimited outpatient cover.
Data seen by The Standard shows that currently 247,022 teachers on government payroll have listed for the medical cover.
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The scheme will cover one teacher–the principal member–one spouse and four children.
The document shows that the teachers have for the past one year listed 479,162 family members in the scheme.
This means that in total, 726,184 persons are currently benefiting from the teachers' medical scheme.
The Teachers Service Commission (TSC) has awarded the three-year contract to AON Kenya. AON managed the one-year Sh5.3 billion medical scheme which expired in June.
TSC floated fresh bids on July 4, attracting two other firms-Clarkson Insurance Brokers Ltd and Liaison Group (Insurance Brokers) Ltd.
The AON award letter seen by The Standard says the firm was awarded the tender "on a framework contract basis". We also established Wednesday that Clarkson has appealed the tender award at the Public Procurement Review Board.
The grounds of the appeal were not clear by time of going to press.
The letter says that during the first year–which starts October 1–the medical scheme will cost Sh4.5 billion.
The cover will rise to Sh5.1 billion and Sh5.6 billion for second and third years respectively.
"Please note that the contract will be performed on an annual basis and may be renewed for the second year and the third upon satisfactory performance and availability of funds," reads the TSC letter dated September 8.
The comprehensive medical scheme is being funded through conversion of the current teachers medical allowance into a medical fund.
Teachers get between Sh900 and Sh4,400 towards their monthly medical allowances. This means that currently the lowest paid teacher contributes Sh11,448 per year towards the scheme while the highest paid surrenders Sh52,944 annually.
The document affirms that children will benefit from time of birth until the age of 18 years.
"...or to the age of 20 years provided they will be residing with their parents and also enrolled in a recognised post-secondary institution. No age limit applies to child dependents with disability."
In addition to in-patient covers, teachers will also have dental cover of up to Sh25,000 per year. A similar amount has also been pegged for optical cover.
"The scheme will also open high cost hospitals to teachers on referral basis. Wellness programmes and psychosocial tele-counseling services will also be available for all members," add the document.