Why NHIF could soon be a forgotten story

By Nzioka Justin | Monday, Feb 10th 2020 at 12:14
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Unless the new proposed rates by NHIF are implemented, the institution could soon come down stumbling. The new rates were put on hold by the president last month following public uproars.

Concerns have been expressed by the Health Financing Reforms Expert Panel (Hefrep) report, that if anything is not done to arrest the situation, the insurer may soon be unable to meet its financial obligations. 

Deficiency issues were feared of hitting the institution as early as start of 2020, according to the report. "Several county schemes also default on their premium payments. Given the trend in growth, in premiums and claims, when future revenues and claims of the county schemes are projected, claims will outstrip revenues by 2026, making the county schemes unsustainable," the report indicated. 

The report revealed that the maintenance costs for running the system were quite high hence the deficiency issues. This led to the report suggesting the government resolve into tax financing, other than relying on involuntary contributions for informal sectors. 

Despite the contribution of the premiums having tripled, the number of beneficiaries has grown up to five times. This has posed weight to the premiums' growth instead. 

This is according to the committee led by its chairperson, also the Murang'a women rep. Ms. Sabina Chege, as reported by the Principal secretary for Health Ms. Susan Mochache. 

"The health financing reforms panel, therefore, recommended that the Fund's solvency position be monitored closely," stated Ms. Mochache. 

Ms. Susan Mochache also revealed that the proposed recommendations were yet to be fully discussed before their leakage to the public, hence causing the public outcry. Her words were also seconded by the NHIF CEO on acting capacity Mr. Nicodemus Odongo.

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